How to trade like a retarded genius - an actual strategy that works

Yes, post it.

 

SPX Option Chains taken from TOS "Ondemand" feature at
Central Time Zone
8:33
9:15
10:30
12:15
2:15
2:57

 

Even if you have an edge on determining direction, you would still be better off trading the S&P futures.

Just looking at your first two screen grabs: Had you bought the 4110 Call right after the open and paid the 19.20 ask, then sold it 45 minutes later and took the 39.50 bid, you would have made 20.3 points, so $2,030.

During that same time period, ES moved 40 points at $50/per point, so $2000.

Both gains almost the same, but the entry cost for the option contract was $1,920, whereas the day trading margin required for the future's contract (at my broker) would have only been $400. So you could have traded almost five future's contracts for the same cost as one option contract. Plus, I think it would be much easier and faster to get in and out of your trade with futures.

However, you aren't going to get those futures day trading margins at TDAmeritrade because they aren't focused on futures. You would have to seek out a discount futures broker.

Just something to keep in mind during your decision-making process.

 

Yes, I get that. I have a futures account with AMP for many years now and use Sierra Charts as my platform. I have never had success with futures as I always get too cute with the short term noise. I am not currently trading SPX but I follow it. I just got involved in the discussion here as Easymon asked a few questions about it. I day-trade options on stocks as it forces me to play the longer swings during the day and trade above the noise.

I am finding even looking at SPX during the day distracts from my trading as it influences me too much. I want to just look at my stock list and trade them for what I see.

PS: You do have limited risk with Options on SPX -- one advantage over futures.

 

Are you using ES for monitoring the SPX price action?

 

If you want to explore index options trading, instead of starting with SPX, you might want to check out the mini-SPX to get your feet wet: XSP

 

No, the two are basically the same except for the opening bell gap.

 

Do you monitor spx on sierra using IB data?

 

Wow, I had never heard of this and it looks like it has been around for a long time. I really like the tax 60-40 tax treatment on this but there is very little option volume and the spreads are way too wide to trade. I can usually get the mid-point of the spread but these are too wide to even get a good sense of valuation.