options daytrading system

Discussion in 'Trading' started by astevens288, Feb 3, 2008.

  1. Hi! I'm an options trader (usually hold positions less than 30 days; interactivebrokers is my broker). I hope that someone can comment to help me with a question that I have. I see that there are many great software tools out there to automate ones trading (I am looking at bullettrade in particular).

    My question is: to significantly bump up my performance, I want to have my options picks daytraded automatically by a software program. The problem is that I know nothing about daytrading strategies. If I were trading stocks, cool-trade.com seems to be what I am looking for, but I haven't found something that I can use with options. Is there an autotrading software program out there that comes with excellent pre-defined options daytrading strategies? Can I do this with bullettrade? If not, is there somewhere where I can buy an options daytrading strategy and then just set the rules into my bullettrade application?

    Thank you for your time!
  2. Forget about daytrading options.

    The bid-ask spread is so large, relative to the options premium, that you must catch a relatively large move to break even.

    Spread is usually even larger in individual stocks than index ETFs.

    Who recommended you to daytrade options? This sound like churning to me, brokers want you to place frequent trades so they get more commissions.
  3. Here's a place where you can start if you want to daytrade options:

    DeMark On Day Trading Options

    I have no idea if the book is any good or not, I don't use any of his techniques in my trading either.

    It's just a book that I've come across in my readings. FWIW, I agree with the previous poster, because of the spread it's much more difficult to daytrade options profitably than it is to daytrade, say, the e-minis. Options are more designed for multi-day, position trade or hedging strategies.

    Good luck,