My Daytrading Plan

[tomkat22]

One can use any method.
As an options guy, I prefer my method using the protective Put option.
Man, this is just one (1) options trade opened at the beginning, and closed after 5 days or so.

Closed after 5 days? That's not daytrading. You're wasting your time messing with options,you're barking up the wrong tree.

 

[Quanto]

Closed after 5 days? That's not daytrading. You're wasting your time messing with options,you're barking up the wrong tree.

You simply don't understand: daytrading is done with the stock.
The Put option is for the downside protection of the stock (ie. as a hedge).

 

[Quanto]

Folks, you better should not risk to get blocked by me....
So, please behave civilized and constructive in this nice discussion...

I freely share my ideas with you, ie. I disclose my trade secrets to you,
so you better should be constructive to improve the idea, for our all benefit... Thx.

 

[tomkat22]

You simply don't understand: daytrading is done with the stock.
The Put option is for the downside protection of the stock (ie. as a hedge).

So you're still in the trade 5 days later? How does a Put that expires 5 days later help you when all trades must be closed the same day by 4 pm ET? What is it's advantage over a simple Stop?

 

[Quanto]

So you're still in the trade 5 days later? How does a Put that expires 5 days later help you when all trades must be closed the same day by 4 pm ET? What is it's advantage over a simple Stop?

Let me ask you this: do you know options trading? Ie. how a Call and Put option functions?
If not, then please read on the net first b/c otherwise a disccussion with you will be difficult, don't you agree?

 

[Laissez Faire]

Honestly, why are you here wasting your time having arguments with everyone?

Your time is better spent studying and honing your plan - which when finished should be kept private and used to get rich (if it's any good), not discussed with random people on ET.

At this point, your plan is vague at best. And the expected result would be a net loss.

 

[tomkat22]

Let me ask you this: do you know options trading? Ie. how a Call and Put option functions?
If not, then please read on the net first b/c otherwise a disccussion with you will be difficult, don't you agree?

That's fine but would you answer the question? Is the Put closed the same day?

 

[Quanto]

Honestly, why are you here wasting your time having arguments with everyone?

Your time is better spent studying and honing your plan - which when finished should be kept private and used to get rich (if it's any good), not discussed with random people on ET.

At this point, your plan is vague at best. And the expected result would be a net loss.

I try to learn from other experts, ie. filling the gaps in my thoughts.
But as you too see most participants even have no clue of options trading, when the option is a fix part of the strategy...

And the expected result would be a net loss.

Hmm. sure? How did you come to this conclusion?

 

[Quanto]

That's fine but would you answer the question? Is the Put closed the same day?

I now told that many times: the Put option is closed only after 5 days or so (at the option expiration).
The stock is daytraded in and out many times during the day(s)...

 

[Cabin1111]

I'm going to ramble...But (I believe everything I am about to say is truth).

There is a reason the market feels the stock is only worth $10. That is not a good thing...If it is biotech or software it will be losing money. If it's a buyout candidate the market would have sniffed it out long before you (most likely). If it's a profitable company, it probably has a niche (that will be hard to grow).

Are you saying you will spend your whole week on one $10 stock and buying one put? You can not make a living on that...It's something you play with at Robinhood or IB for an hour or two. You need a real job (fund a 401K/IRA).

Trying to fill your trade and option (manually) you will not get good fills. The market makers and dark pools have a control over the bid/ask spread. Also 95% of the market will move in front of you on your bid/ask, because electronics are involved. When I have mentioned this before to you...You seem to shrug it off. You should be spending hours studying the process of entry/exit.

March 23/24, 2020...Trump shuts down the country. 2008 banking crisis...The market is in disarray. There may be no market for your put (support level drops below it).

My personal feelings...Run your program (not paper trade). See what really happens. You will learn so much more being in the middle of it, rather than from the outside...