Intraday Options Trading ?

Hi there,

I've been trading regular US stocks for a while.
Intraday, holding between 5min and up to 2h max.
Buy low sell high, or shorting. (not gambling, indicator based strategy)

Just wondering if it's possible to trade common US stocks intraday as above - using options ?

Is it possible? Are there advantages ? Disadvantages ?

Please no complicated answers - I just want to know if worthwhile looking into it.

Thanks a lot

 

IMHO: Assuming, you wish to employ same trade strategy, but just use options instead of the underlying... The slippage with options will be larger. However, IFF your trades can tolerate the additional slippage (think of it like a hysteresis), you may do well. -- If new to options, you may use synthetic positions (will be like trading the underlying without requiring expertise in iv movement). -- You should be able to quantify expected slippage per instrument by examining them for a bit. -- Note: I do not day-trade, so take with grain of salt.

 

Yeah, that's what I meant. Thanks for the info.

 

I forgot to mention:

I trade relative highly volatile stocks. (5-20% movements within 30min and less)

Do option prices move as strong so fast as the underlying asset ?

And can I "exit the position" at any time ? (or is there a lack of options liquidity during volatility)

 

0 Days to expiry option trading is in spy/spx/es

 

I think yes it is possible.

 

Can you post one of your most recent trades (entry/exit/instrument/price points/timestamps) {on an instrument with options} -- may allow a closer look at "what iffs"?

 

I've daytraded the weekly options on the volatile and liquid FAANG+ stocks (META, AMZN, NFLX, NVDA, MSFT & GOOGL). Obviously more slippage than the underlying stocks, however on the weeklies a 1% move usually translates to a 30-70X movement in the option. It is very volatile, however.

 

Chose an extra volatile (and profitable) trade.
Buy/Sell was successful... +57.67%
What would options yield here?

#ELOX
July 11th
Entry 10:21:05 ($5.67)
Exit 10:54:00 ($8.94)

 

ELOX has NO options! -- Need a trade on instrument with options!
-> Can you post one of your most recent trades (entry/exit/instrument/price points/timestamps) {on an instrument with options} -