on average...how many trades do you place per day?
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- Thread starter greeneveryday
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on average...how many trades do you place per day?
No more than 5/day...Sometimes I only take 1 trade a day and shut down computer if it get a big win or loss.
this point is key to success, especially weekly expiry options.
if you wouldn't mind sharing some of your strategies ....do you actively/especially trade Monday or Tuesday or as late as Wednesday/Thursday in the week of a Friday expiry ?
do you do your option trades in the first 30 mins of open or is it a different time depending on the stock- if so, what is your time of day trade pattern for AAPL, NFLX, SHOP, AMD, TSLA etc
are your trades ATM, ITM, OTM?
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Are you serious? I don't just hold bags... I am day trader. I'm in and out in minutes. Today? 28K in SHOp put.
Profit.
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That's a good way to manage your trades. Not all are able to do this; which is why they mostly get into over trading.
@greeneveryday, I can see the AAPL, NFLX, SHOP, AMD, TSLA being good day option trades.
take SHOP yesterday April 21, opened at ~$660, low $556, end of day $585.
at the open for options expiring April 24 a straddle (buy put & call) at $660 strike looks like it cost approx $33 each side, $66 x 100 = $6600
on trade confirmation place sell order on each one at $66. The put would have been filled by midday, leaving the bag holding call.
last trade end of day on the $660 call was $7.
so its basically sell to close, get the $7 & call it a day.
$7 return on a $66 bet is 10.6%, not bad for a day. Rinse & repeat daily.
I'm going to watch & follow the 5 stocks, the ATM straddle trade for weekly options expiries.
could this could be the perfect trade with zero loss.
** key is on the straddle the call & put cost must be as close as possible with trading in 5-3 days before each option expiry date.
take SHOP yesterday April 21, opened at ~$660, low $556, end of day $585.
at the open for options expiring April 24 a straddle (buy put & call) at $660 strike looks like it cost approx $33 each side, $66 x 100 = $6600
on trade confirmation place sell order on each one at $66. The put would have been filled by midday, leaving the bag holding call.
last trade end of day on the $660 call was $7.
so its basically sell to close, get the $7 & call it a day.
$7 return on a $66 bet is 10.6%, not bad for a day. Rinse & repeat daily.
I'm going to watch & follow the 5 stocks, the ATM straddle trade for weekly options expiries.
could this could be the perfect trade with zero loss.
** key is on the straddle the call & put cost must be as close as possible with trading in 5-3 days before each option expiry date.
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3 days to expiry a straddle option expiring April 24 paper trade of the day SHOP
at the open $616
right after open the $620 options straddle ATM, cost average +/- few pennies ~$29 per side, total cost $58
on order confirmation, sell to close order on each one at $58 on the call & put
see what happened at EOD
at the open $616
right after open the $620 options straddle ATM, cost average +/- few pennies ~$29 per side, total cost $58
on order confirmation, sell to close order on each one at $58 on the call & put
see what happened at EOD
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Were you writing or buying?
buying both sides ATM at the same strike price covered in the previous post which for the SHOP trades yesterday would be a no lose, just a 10.6% overall gain
the trade strategy is options 5 days to expiry on volatile expensive stocks with high IV, lots of volume getting the straddle at equal cost or as close to it.
example on a $500 stock that moves around more than 5%/day, a straddle ATM option 5 days to expiry, a typical ATM might cost $20. So a 5% or $25 movement should reflect in the option price move of not less than $20
that being a perfect trade, the call or put, would close out, leaving the other side open, which based on the Tuesday SHOP close there was still money on the table to close out the call.
with todays trade, I have no idea where SHOP is headed & even with a zero change (other than its close to expiry date) a decay might see EOD drop.
worse case zero profit, hopefully smallish loss due to decay.
I have done these type of trades in the past & found the best is 5 days or 4 days to expiry