Options Trades For Capital Growth

Hey Quest

Looks like a cool thread. I also trade options intraday. I buy weekly otm calls risking 20% of my account with 50% stop. No overnight holds (premium killer) Looking for a 50% return or more. With weeklies I look for the more liquid options. Also compound the account balance so 20% is risked the next day of new balance. As account t builds risk will be reduced.

Seems like Oddtrader knows what he is talking about. I'll be happy to follow the thread and hopefully learn a thing or to.
 
Actually I am here to learn from you guys. I often compose and then post immediately without proofreading, so you can find easily many things simple not quite right nor reliable. The risk is yours, especially when playing options!

Mr Super Trader said:
Hey Quest

Looks like a cool thread. I also trade options intraday. I buy weekly otm calls risking 20% of my account with 50% stop. No overnight holds (premium killer) Looking for a 50% return or more. With weeklies I look for the more liquid options. Also compound the account balance so 20% is risked the next day of new balance. As account t builds risk will be reduced.

Seems like Oddtrader knows what he is talking about. I'll be happy to follow the thread and hopefully learn a thing or to.
More...

When you mentioned, " Also compound the account balance so 20% is risked the next day of new balance. As account t builds risk will be reduced.", are you saying the risk will be constantly at 20% level of daily updated account value? Thanks!
 
OddTrader said:
Actually I am here to learn from you guys. I often compose and then post immediately without proofreading, so you can find easily many things simple not quite right nor reliable. The risk is yours, especially when playing options!



When you mentioned, " Also compound the account balance so 20% is risked the next day of new balance. As account t builds risk will be reduced.", are you saying the risk will be constantly at 20% level of daily updated account value? Thanks!
More...

Hi Oddtrader Yes total risk is 20% although stop puts me at 10% risk a day.

Basic example start with 1000.00 buy option 200$ 50% stop -100$ account balance now 900$
with 10% loss.

Next trade 180$ 20% of new current balance of 900.00

Basically 10% of account balance is at risk every day. A lot of risk. As account grows risk per trade is reduced to more acceptable levels. Not to many people feel comfortable with 10% risk per trade. As my R/R with the exception of trades I let run is even just need to win more then 53% of the time. Assuming commissions are 3% to end with a net profit.

Cool thing is you can day trade options in a cash account with out getting hit with the pattern day trade rule that applies to a margin account. Also in a cash account Options are only subject to T-1 As opposed to T-3 when trading commons in a cash account. So money's used are available the next day.
 
Mr Super Trader said:
Hi Oddtrader Yes total risk is 20% although stop puts me at 10% risk a day.

Basic example start with 1000.00 buy option 200$ 50% stop -100$ account balance now 900$
with 10% loss.

Next trade 180$ 20% of new current balance of 900.00

Basically 10% of account balance is at risk every day. A lot of risk. As account grows risk per trade is reduced to more acceptable levels. Not to many people feel comfortable with 10% risk per trade. As my R/R with the exception of trades I let run is even just need to win more then 53% of the time. Assuming commissions are 3% to end with a net profit.

Cool thing is you can day trade options in a cash account with out getting hit with the pattern day trade rule that applies to a margin account. Also in a cash account Options are only subject to T-1 As opposed to T-3 when trading commons in a cash account. So money's used are available the next day.
More...

Thanks, sounds good!
 
Mr Super Trader said:
Hi Oddtrader Yes total risk is 20% although stop puts me at 10% risk a day.

Basic example start with 1000.00 buy option 200$ 50% stop -100$ account balance now 900$
with 10% loss.

Next trade 180$ 20% of new current balance of 900.00

Basically 10% of account balance is at risk every day. A lot of risk. As account grows risk per trade is reduced to more acceptable levels. Not to many people feel comfortable with 10% risk per trade. As my R/R with the exception of trades I let run is even just need to win more then 53% of the time. Assuming commissions are 3% to end with a net profit.

Cool thing is you can day trade options in a cash account with out getting hit with the pattern day trade rule that applies to a margin account. Also in a cash account Options are only subject to T-1 As opposed to T-3 when trading commons in a cash account. So money's used are available the next day.
More...
I don't understand these. I thought you need to have at least $25K in account to do the day trading, no matter that you trade underlines or options. I use IB. What brokerage you use? Thanks.
 
BTO 10 Contracts of Spy Mar 04 2016 192.50 Call @ $2.62
upload_2016-2-17_16-2-29.png
 
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