Day Trading Options is a bad idea. Anyone else?

Discussion in 'Options' started by 3acor, Jun 4, 2019.

  1. 3acor

    3acor Guest

    Thanks a lot for your sharing!
     
    #11     Jun 5, 2019
  2. 3acor

    3acor Guest

    I only trade "stocks in play" high liquid/high volatility but I started using options to trade the expensive stocks (150$+) but I found its better to just get a bigger capital and trade the stock itself
     
    #12     Jun 5, 2019
    qlai likes this.
  3. 3acor

    3acor Guest

    I meant messing as in I never traded options before and looking to see how it is. I am not just gambling
     
    #13     Jun 5, 2019
    qlai likes this.
  4. 3acor

    3acor Guest

    Thanks for your reply. No I use IB TWS. The thing with options is that I use the OptionChain Trader and so when I want to enter a trade I have to use the mouse whereas if I trade the stock I can just use hotkeys. So by doing that I am very slow
    The other thing is that the spread is huge so if I enter the trade and it goes against me right away, I immediately lose a lot.

    I can see the option chart on TWS. I have VWAP and MA on it
     
    #14     Jun 5, 2019
  5. Turveyd

    Turveyd

    In the money used to have tighter spreads and not much of a time decay bonus and track well at 10c accuracy.

    Just means your paying $5 for a $53 stock strike 50, yes it can go to zero like a SL, but it can rebound back to $55+ Before expiration then all is good.

    Traded stocks like above after PDT came in for a year full time, before screwing it up ofcourse.
     
    #15     Jun 5, 2019
  6. zdreg

    zdreg

    SL?
     
    #16     Jun 5, 2019
  7. Turveyd

    Turveyd

    How long have you been trading and around forum's LOL

    Stop Loss, the Exit price on stocks / index's / Forex and even on Options, price drops to, it closes.
     
    #17     Jun 5, 2019
  8. zdreg

    zdreg

    "
    How long have you been trading and around forum's LOL

    Stop Loss, the Exit price on stocks / index's / Forex and even on Options, price drops to, it closes."
    _______________________

    you should learn correct terminology. An option/equity position can go to zero, not a stop loss.
     
    #18     Jun 5, 2019
  9. Turveyd

    Turveyd

    Ahhh you can use SL's with Option to prevent going to Zero.

    What I was refering to, was a fixed loss being $5 x 100 so $500 Max loss, but unlike a SL which when hit is over and gone on a stock, if you have enough time a Option can get back to profitable.

    More you buy into the money, bigger your Stop Loss, lower the odds on taking a 100% loss, further out you go, more chance of getting back to + but also more added on for the time value.
     
    #19     Jun 5, 2019
  10. tdeel20

    tdeel20

    I did it for a while. I had no problem with the spread. I traded SPY. I used simple EMA/MACD charts. I usually waited until 10 a.m.(CST) to get in, and I was usually out before 2:30 p.m.(CST). I held overnight a few times, which I don't like to do, but usually came out ahead.
     
    #20     Jun 5, 2019
    3acor likes this.