I think the answer to the original question is pretty simple--no, you shouldn't try to trade options on a very short term basis. The spreads and potential lack of liquidity will destroy you. I am sure there are many sophisticated options traders using strategies such as gamma scalping who do trade big size on a daily basis. But for the small scale player using options basically as a leveraged way to make directional bets, no way.
But are these guys doing directional trades, as AAA Beltway implied in his post, or are they spreading and/or doing volatility trading?
It was different during the bubble when the underlying stock moved 20-30 bucks intraday and the options moved huge (in terms of %). Nowadays, it is a different game. I do trade the SPX options frequently - but definitely NOT every day. Have Fun Trading!
I am not sure that McMillan says that options are a good vehicle for day trading. If you follow his trades, he prefers futures for day trading. Most of his options trades last 1 to 4 weeks. Some of his spread trades last longer. George
I would really like to know how they are doing it, because there are not that many people who can make decent money scalping the underlying stocks. I'm sure it is a big secret, but in fairness to the guy who started this thread, do you claim some average trader could do it?