This looks like old stuff years back. I´m just diddling with SPY options. Not intending to day trade, but seem to be ending up that way anyway. The nature of the moves I guess? I´m trading using the 10 day hourly chart in funny money. Anything shorter doesn´t seem to make it. Anybody got any hints on trading spy, straight buying and selling?
look at the date coach...... daveb351 is probably long gone by now!!! falconview has too much time on his hands!
Richard Rimes comment. Probably right Richard. I´m in the Caribbean, so it is sunny and warm, nice Spring day. ( just to make you jealous ) With just one or two trades a month in my regular money making methodology, I´m fishing around in my spare time for something else. Spent yesterday diddling with the SPY short time trades of 5 cents gain. Turned out to be a mixed bag. Had read of some guy working on the 5 minute chart and tried it, but couldn´t somehow find the tempo. It was frustrating, because I use Big Charts, 20 min. delay and the indicators, wouldn´t work. Nor could I get them to match using real time data on premium prices. It almost seemed like it should work, but didn´t get the fast trades like that, to work as I wanted. Working in a funny money account specifically for such experimenting. Don´t care if I lose, or win there. Wasn´t able to find that guys internet blurb again. The idea was you would make $50 clear, maybe 6 or 8 times a day. Didn´t work. Will try it again today, as the market is dull. In congestion, before a breakout. Did a little more reading, and it was suggested I move to in-the-money options around $5 for faster and better moves. Instead of using the customary out the money option. Should shave $25 off the commission on a $4000 trade.
Not the OP, but I can answer the first question at least. To short a stock in an IRA buy itm puts and far out. But how to day trade short in an IRA i don't know, again because the spread will whack you. (N.B. actually a short call and a long put is synthetic short stock, but you can't do that in an IRA, but you could of course buy a bear spread or any bear position so long as the risk is defined.)
A six month out, deep in the money put (70-80 negative deltas). A couple of those and you will pretty much have it. This will give you a synthetic short == minus 100 deltas with very little theta.