best option strategies for day traders

Discussion in 'Options' started by nyc_guy, Feb 6, 2012.

  1. nyc_guy


    Just wanted to get some inputs from people here on what they consider the best option strategies for day traders in futures (commodities, index futures, fx, treasuries).

    Basically the way I see it, active intraday traders are synthetically long gamma by virtue of their activity, especially those who are looking for break outs, momentum, etc. Having said that then intuitively you want to be playing from the short side in options because your earning income vs your underlying synthetic gamma.

    i think condors, ratio spreads amongst others are decent strategies for guys looking for supplemental enhancement of return to their day trading strategies. I realize the black swan types will say it's dangerous, but the idea is that you are active trader who can manage the negative gamma (including the overnight headline risk when it happens).

    Want to see what others think and what would make sense in periods like this when vol is almost too cheap to sell in most markets.