You can't day trade options unless you are on the floor and have the time and place advantage those guys have. If you want to trade options, sell them against stock positions. Example, I am short 2000 qqq at around 27. Last Friday I sold the May 27 puts at .75 and yesterday I sold the May 28 calls at .50. So I took in a $1.25 2000 times. I want the Q's to close between 27 and 28 so I can keep both premiums and also retain my position. If it closes below 27 they put the stock to me and my position is closed. If it closes above 28, I'm going to be short another 2000 shares. As long as it's not above 28.25 by expiration.............I make money. There is alot of resistance on the Q's at 28. We have two weeks to go for option expiration. The premiums will implode late next week. At this point I could buy back my options if I chose. I usually wait until expiration though. Just food for thought. The margin requirements are 50% for the short and 20% of the underlying for the options plus the premium less any amount the contract is out of the money. This works month in and month out. Sometimes I use individual stocks instead of the Q's. Good luck if you try it.
Never trust the guys which pump you wishful thinkings like the one right above. F*cking touts have been rising recently telling people that shorting options (either against underlings or naked) always makes money. That's bullshit. The matter of fact is that the volatility has been low recently. The f*ckers want many of you guys to sell short to supply the other side of the market, hopefully most improperly to you but advantageous to them. Do not, I repeat, do not touch options.
Here is someone who has figured it out. www.daytradertoad.com Be prepared for serious drawdowns trading options. Option values can change +- 50% in one day. I think if you are making more than 2 trades a week you are over trading at least in the OEX There is a limit to number of contracts you can trade due to the liquidity. Probaly 20 contacts on the OEX These are my worthless insights.
I'd have to disagree with you on the liquidity issue. The oex is very liquid and usually at least 50 wide on each side.