Starting to develop a back for day trading "options"

qlai said:
I was attending below room and I like the guy who runs it. IMHO, his method is valid, but I hate illiquid instruments and day trading options would frustrate the hell out of me :)

http://www.tradewithjoe.com/
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SPY options are very liquid, huge volume thin spread (bid/ask) easy to get in and out. Making money on the other hand is a different matter.
 
ironchef said:
SPY options are very liquid, huge volume thin spread (bid/ask) easy to get in and out. Making money on the other hand is a different matter.
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I was talking about higher beta stocks, but I think if you can make money day trading SPY, you should be able to make money trading SPY weeklies. In fact, I was thinking of writing an algo that would shadow my equity trading with options. Should be a fun project for future.
 
qlai said:
I was talking about higher beta stocks, but I think if you can make money day trading SPY, you should be able to make money trading SPY weeklies. In fact, I was thinking of writing an algo that would shadow my equity trading with options. Should be a fun project for future.
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Thanks for the tip. I'll check out.
 
qlai said:
I was talking about higher beta stocks, but I think if you can make money day trading SPY, you should be able to make money trading SPY weeklies. In fact, I was thinking of writing an algo that would shadow my equity trading with options. Should be a fun project for future.
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I was neither able to day trade SPY nor day trade SPY options. :(:banghead:

TSLA has very high beta and very liquid by the way.
 
ironchef said:
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.
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How can we be sure that jeffalvinson is profitable if you couldn't make his method work.
 
traider said:
How can we be sure that jeffalvinson is profitable if you couldn't make his method work.
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You know he is the real deal if you follow his posts. He's on ET since 2006 but haven't posted lately. Hopefully he is still around and reads posts.

I only tried his "basic system" which was his starting point. He expected us to develop our own enhancement from that starting point. It was actually positive but I couldn't make the basic system worked better than what I had.
 
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