Swing trading vs. day trading

[Drawdown Addict]

Great question. One ought to think the market should price those in already and indeed you know from IV, if it does or does not forecast a big move. But to trade trends using it? The exact answer is above my pay grade.

If you want to better understand options, read Hull, McMillan, Bennett and Sinclair. Sinclair and Bennett are more from a trader's perspective, Hull & McMillan are text books, teaching you the basics of options. Someone here told me that Bjork's Arbitrage Theory in Continuous Time is great if you want to compute prices, etc. as a function of time. But the math is too hard for me so I have not been able to finish it.

Thank you, sir. That will keep me busy for a few months.
I have been playing with options on futures as an indicator for the underlying futures markets. I don't play the options themselves, just the underlying on a daily basis. I saw that the "Open interest" combined with the IV can give a hint of where the market is going, but as with any indicator I might have been self-fulfilling the prophecy that I wanted to create. Anyone can tell that I am at the starting point, maybe barking at the right trees but still looking at a long way to go.

I'll give those books a go, surely they will help.

 

[Jdesey]

That was my first thought as well but Rodman isn't in the HOF.

Yes, it is Dennis Rodman. And yes he is in HOF... inducted in 2011..here is the link.
https://www.hoophall.com/hall-of-famers/dennis-rodman/

 

[tomkat22]

Yes, it is Dennis Rodman. And yes my bad he’s not in the Hall of Fame but he should be.

Yep he was workhorse who knew what his job was.Those Piston teams of the 90's with him and Isiah Thomas sure were fun to watch. He was the player everybody loved to hate,he had no qualms about swinging an elbow here and there! LOL

 

[tomkat22]

Yes, it is Dennis Rodman. And yes he is in HOF... inducted in 2011..here is the link.
https://www.hoophall.com/hall-of-famers/dennis-rodman/

Wow thats news to me. Last I heard his off the court antics were preventing him from being inducted. I guess the voting committee had a change of heart.

 

[Jdesey]

Wow thats news to me. Last I heard his off the court antics were preventing him from being inducted. I guess the voting committee had a change of heart.

Yes, exactly but his on the court results Scott him in the Hall of Fame. My point here is that this is a guy that focused on just one thing out of a countless number of things that he could’ve focused on like other players do. He was very successful at that.

 

[Rams Fan]

The thing is, I don’t know why.

Gamma has been wind at that back of your day trades, theta a headwind on your swing trades?

 

[Magnolia York]

Just one trend is practical and there isn't a second thing in trading.

 

[murray t turtle]

%%
YES;
except one year is not near enough time.
IF that was me i would want to find out why swing trades did net loss/ when SPY benchmark is about +12%, as of FRI close 9\22\2023 SEPT.
Single stocks trading could easily explain it??

 

[ironchef]

Thank you, sir. That will keep me busy for a few months.
I have been playing with options on futures as an indicator for the underlying futures markets. I don't play the options themselves, just the underlying on a daily basis. I saw that the "Open interest" combined with the IV can give a hint of where the market is going, but as with any indicator I might have been self-fulfilling the prophecy that I wanted to create. Anyone can tell that I am at the starting point, maybe barking at the right trees but still looking at a long way to go.

I'll give those books a go, surely they will help.

You are welcome.

One more author, who actually influenced me the most, not exactly about the mechanics of options but his concepts are very important to option traders, especially those who write options: Taleb.