I'm wondering if anyone has suggestions for options that might be suitable for day trading? I imagine some criteria would be wide daily range, tight spread and reasonable liquidity. I'm conducting my own search, but any insight would be most helpful and APPRECIATED. Thank you very much for your replies.
The poor deltas of ATM options, wide bid/ask spreads and commissions make options a bad choice for daytrading. Futures are much better. Options were not designed well for daytrading.
k200 from korea. Individual strikes do a million contracrs a day, 1 cent spread. Available to non US clients of interaactive brokers.
I can't believe there's another Bobby Murcer fan, especially one that trades options! Bobby Murcer was a friend of the family during his first stop with the Yankees, Giants and Cubs. My brother went to his wedding in Tulsa in 1966! We've been out of touch since the late 70's, but your screen name sure gave me a big laugh! Steve Rosenbaum http://www.options-trading-resources.com/EliteTrSig Option Trading tools the pros wish they had! A former Chicago Mercantile Exchange employee reviews stock option trading software, books, and web sites and online income opportunity.
Daytrading Options Although I agree in principle with the general belief that options were not designed for daytrading, there are a couple of techniques one can use to trade the big OI, like OEX, near ATM options, during the last 5-10 days before expiration, where they go a little crazy and very volatile. Small amounts of money should be devoted here because one can easily lose his/her stake in a day or two. On the other hand, this is where you can get a 10-bagger once in a while.