Scalping options questions?

D

dominover

I've tried asking similar questions on Australian message boards but when it comes to options, nobody replies. I trade Australian sticks and am going to learn about trading options for the future.

Can someone please help me with the below questions.

If I buy a call option 'in the money's and it suddenly falls out of the money due to the underlying stick movement, I expect the premium of that option falls. Can I still sell that out if the money call option at the reduced premium before expiry? (European style optiin)

I understand the Greeks quiet well. Is there a good book or learning material which teaches scalping using the Greeks? I'm only interested in trading short term price swings intraday and selling before expiry.

Is the brokerage on options traditionally higher or lower than the brokerage on stocks?

Does anyone here scalp using options and do you find it was worth looking into?

Thanks
 
Jeff Augen has some books on options for short term and expiration plays that are very good. Commissions on options usually a $1 where as most stock trades are free these days. I trade one day plays using butterflies. Enter at 1 DTE out at 0 DTE. I like the R/R. Also play some expiration day straddles in /ES or individual stocks.
 
Forget about using options to scalp stocks on the Aussie market. The spread alone will kill you on a round trip. If you can successfully scalp stocks just trade the underlying or if you want a bit of leverage use cfd's FORGET about options.
But to answer your question yes you can sell out before expiry. Only broker that is viable to trade aussie options is IB and it costs 17c per contract for stock options and $1.70 for index options.
 
caroy said:
Jeff Augen has some books on options for short term and expiration plays that are very good. Commissions on options usually a $1 where as most stock trades are free these days. I trade one day plays using butterflies. Enter at 1 DTE out at 0 DTE. I like the R/R. Also play some expiration day straddles in /ES or individual stocks.
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Hey caroy unfortunately on the Aussie market no one is going to play ball on expiry day so if you are not out the afternoon before you are holding to expiry.
 
I do scalp with options (primarily for the high leverage). Not sure about non US markets, but all US traded options can be sold back to market makers (unless the position moved so far against you that the bid price is $.01
 
getthatintoya said:
Forget about using options to scalp stocks on the Aussie market. The spread alone will kill you on a round trip. If you can successfully scalp stocks just trade the underlying or if you want a bit of leverage use cfd's FORGET about options.
But to answer your question yes you can sell out before expiry. Only broker that is viable to trade aussie options is IB and it costs 17c per contract for stock options and $1.70 for index options.
More...
Thanks for that information. Do the spreads are huge in Australia. Well that's disappointing but it's good to know nonetheless.
Yes I've strongly considered cfd's too.
 
deepfkvalue said:
I do scalp with options (primarily for the high leverage). Not sure about non US markets, but all US traded options can be sold back to market makers (unless the position moved so far against you that the bid price is $.01
More...

You're trading Aussie Options right?
How do you find the spreads? Prohibitively high?
 
caroy said:
Jeff Augen has some books on options for short term and expiration plays that are very good. Commissions on options usually a $1 where as most stock trades are free these days. I trade one day plays using butterflies. Enter at 1 DTE out at 0 DTE. I like the R/R. Also play some expiration day straddles in /ES or individual stocks.
More...
Thanks for the Author tips. Will look into it.
 
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