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
I meant messing as in I never traded options before and looking to see how it is. I am not just gambling
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
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.
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.
" 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.
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.
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.