Intraday Options Trading ?

Discussion in 'Options' started by TheMordy, Jul 16, 2023.

  1. TheMordy

    TheMordy

    I trade medium cap stocks. With $10-$150mln daily Dollar volume. Do they have daily options at all ?
     
    #11     Jul 16, 2023
  2. I suspect you will find trading options on a security without options will be problematic!
     
    #12     Jul 16, 2023
    Quanto likes this.
  3. TheMordy

    TheMordy

    Yep :D

    So is it right to conclude, there are no options for my instruments. :(

    Sorry for the bother.
    I just wanted to here from pros, before I waste my time.
    (have 0 clue about options at the moment)

    Thanks
     
    #13     Jul 16, 2023
  4. PPC

    PPC

    I would forget about using options for 5min - 2 hour holding period, unless you just trade very few of stocks with the most option volume (eg. Tesla), but even that could be problem for such a sort holding period.

    With stocks you can use market order for quick executions, on options the bid/ask spread is too wide for market orders, even for the OTM options on the most liquid stocks.

    Look at the option chains, and you’ll see.

    cat.png

    tsla.png
     
    Last edited: Jul 16, 2023
    #14     Jul 16, 2023
    TheMordy likes this.
  5. Pardon the sarcasm ... trading has many variables... I have found that attempting to "generalize" too early has bad consequences.
    IFF you find an instrument you day-trade successfully with your strategy(s), that does have liquid options, look again! --
    Note: Even if the "generalized" notion that day-trading using options is a bad idea... Your specific case may be an exception! Be careful not to throw the baby out with the bath water.
     
    Last edited: Jul 16, 2023
    #15     Jul 16, 2023
    trade4succes and TheMordy like this.
  6. I think it's already very hard as a retail trader to make more money than your costs. Implicit/explicit transaction costs on options are way more than on stocks, in general. So I also would say, again in general, it is not worth it.
     
    #16     Jul 17, 2023
    TheMordy likes this.
  7. R1234

    R1234

    The most liquid equity option out there is SPY. You can get filled between the bid/ask and essentially have zero slippage. As for individual company stock options, its a mixed bag where the wide bid/ask width may turn a profitable short term trade into a loser.
     
    #17     Jul 17, 2023
    TheMordy likes this.
  8. taowave

    taowave

    Check out this thread,and others by Dustin

    https://www.elitetrader.com/et/threads/everyday-expirations-coming-to-the-spx.364748/


     
    #18     Jul 17, 2023
    qlai likes this.
  9. darktv

    darktv

    If you can see the underlying moving and the options follows after that good no? :D You already have it :strong::strong::strong:
     
    #19     Oct 2, 2023
  10. Options have the benefit of theta decay if you're short. Some time I'll turn my directional trade into a strangle if the stock goes against me.and collect theta. Of course requires being able to value an option and knowing how to adjust positions. It's required to have an if-thin plan and understand how the Greeks change.
     
    #20     Dec 13, 2023