Forums > Main > Options > Does anyone make a living using straight directional trades ?

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Old Jul 20th, 2012, 04:56 PM   #1
Join Date: Apr 2012
Location: United States
Posts: 108
It seems that most forums on the option section consist of people using multiple leg option trades and I wanted to know if anyone makes a living (or a good secondary income) from straight directional option plays ?
Old Jul 20th, 2012, 06:03 PM   #2
Join Date: Mar 2012
Posts: 705
Straight options on SPY a few strikes OTM with the right expiry are basically the same as futures for daytrading... Higher commissions and spread though.

The only advantage directional options have over futures is the weekly options have insane leverage for catching a high odds setup...

Id recommend futures over options if you have a account size over 100k. Otherwise options are better for catching large moves as they can take the heat.
Old Jul 20th, 2012, 07:09 PM   #3
Join Date: May 2012
Posts: 464
you make money market making ,spreading, or beating the system
Old Jul 21st, 2012, 01:02 AM   #4
Join Date: May 2009
Posts: 1,027
You should read the section called... MY OPTION TRADES.
I used to do spreads, and now I'm doing cash secured and naked put selling.
It's NOT for everyone, but I'm comfortable with it.
I feel I have the self discipline not to be greedy. And to use the proper criteria of L-T tech analysis and intelligent fundamental analysis, to do it reasonably wise and safely.

As a side note. Just got back from seeing Batman. Thought it was a big waste of time. Long, boring and a stupid story.
Old Jul 21st, 2012, 01:52 AM   #5
Join Date: Jul 2012
Location: TN
Posts: 542
Quote from Put_Master:

As a side note. Just got back from seeing Batman. Thought it was a big waste of time. Long, boring and a stupid story.
Clearly you aren't a true fan of the caped crusader! I enjoyed it though. Bane's voice wasn't quite what I was expecting though and I think Charlize Theron should have played cat woman. But I enjoyed myself.

Sorry to go off topic!

Directional trading, yes and no. I have made and lost a good bit doing it. Then wins are awesome and the losses awful if you aren't careful. Don't trade big sizes on weekly options on a Friday that is for sure unless it's in the money. If your wrong you will lose so much so fast on expiration day.
Old Jul 21st, 2012, 02:35 AM   #6
Join Date: May 2009
Posts: 1,027
I was a fan of the series. I just thought this one was too long and too boring,... and with a story that was all over the place, and too stupid to be believeable. I even thought the acting by a lot of the characters was silly and not believeable.

As for doing weekly options, I've never done them.
Mostly because I'm pretty picky when it comes to stock and strike selection.
So when I finally see something the looks good, I'm not going to waste the opportunity picking up a puny credit on a weekly.
Good stocks offering good strikes, don't often stay at such good value for long. Hence I prefer to get as much credit as i can from them, over a 4 - 6 period.

The annualized % return looks really good on those weeklies.
But the dollars suck.
When i go shopping, stores and hookers want to be paid in dollars. Not percentages.
And unless you go from week to week with either no gaps or few trading gaps, those frequent gaps between weekly trades, will eventually cut into your dollar and % return at year end. Not to mention all those extra commissions.

However, if you're more into trading volatile, and unstable crap, which pays much better premium than the more reasonable valued quality companies,... then i agree weeklies may be the place to be.
Get in and get out.
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