Starting to develop a back for day trading "options"

qlai said:
Can you please explain why day trading options is better/safer than just trading options?
More...
Sure, I mean I'm pretty new at this but happy to help. I dont day trading options safer or better for that matter. The reason I would like to do it as day trades is because I like to get in and get on crazy moving stocks because I like the quick action but I dont think day trading options is better more like equal to regular options. But that's just my opinion. I think options are safer over all. Both day and longer term. But again that just my opinion based on what I have experienced so for in limited action.
 
TheFoot said:
Sure, I mean I'm pretty new at this but happy to help. I dont day trading options safer or better for that matter. The reason I would like to do it as day trades is because I like to get in and get on crazy moving stocks because I like the quick action but I dont think day trading options is better more like equal to regular options. But that's just my opinion. I think options are safer over all. Both day and longer term. But again that just my opinion based on what I have experienced so for in limited action.
More...

You are not thinking this thru rationally. Do you realize that market makers make their monies keeping the bid and ask spreads as wide as possible? With options, the bid and ask spread at times can be the size of the Grand Canyon. Add to that volatility which can result in you overpaying for options then, volatility collapses and your are down quite a bit. If you are going to day trade, you are better off day trading stocks provided you have proper risk management and position size. Without it, you will just lose your monies.
 
TheFoot said:
I was joking when I said I was being serious but I am being serious about day trading options if that makes sence.

And I'll take a porche or a Lamborghini.

But I am looking for some serious advice because I am new. I may not fully understand what I'm doing but it seems to me to be safer to option 100 shares at 5 bucks a share for say 50 bucks that to lay 500 bucks down to buy outright and then possibly be left holding the bag of shame if I'm worng.

I know not all stocks offer options but I am definitely way more drawn to the crazy stocks that move up and down like a bobber than the slow moving ones.
More...
You just have to understand what @Same Lazy Element was trying to tell you - dead serious.
 
TheFoot said:
Yea that is the general consensus and it definitely concerns me that so many are seem to be saying that. I am treading lightly.
More...
There is at least one successful option day trader on ET: @jeffalvinson. He was quite generous in publishing his method. It was based on TA, a combination of scoring using both option and underlying price movements. Of course the devil is in the details that took him years to make perfect.

If you are interested, you can search for he posts and study it for yourself.

I tested it out, couldn't make it consistently profitable and therefore I don't day trade options.
 
Last edited:
You must log in or register to reply here.
Back
Top