Daily Options Trading

Discussion in 'Options' started by tommo, Feb 15, 2011.

  1. tommo



    I was wondering if any of you guys trade options with a daily expiry?

    They seem pretty lethal. If you sell them there is very little time premium to capture and if you buy them then the rate of time decay is so fast theyre worth about 25% less in a couple of hours. Of course if you capture a big move then there is a huge potential pay off with limited risk... but could say the same about Lotto.

    Anyone made any "consistent" returns with them?

    Thinking there may be sme opportunities hedging them with futures, i.e intraday covered calls, give you a little more breathing room on the downside than traditional outright trading, or something along those line. Would be nice to get some sort of steady money to compliment the longer term options portfolio, if only to smooth out my outright trading if nothing else
  2. If you sell those options you eat like a mouse but shit like an elephant. Buy sheep, sell deer!