I think you will be eaten up by the bid offer. You pay more in dollars in bid offer for an option than for the underlying and you get much less delta exposure.
Suppose you trade ATM options. They have a delta of approximately .50 so that means that you need two options to nab the same initial move as the underlying which in turn means that you are paying double the number of spreads and they tend to be wider than the underlying's B/A. So for scalping small moves, the underlying performs better. For larger moves, the leverage of double the number of options pays off better. All I'm suggesting is that the initial hurdle before profitability is higher with options.
I agree. I think that was why MrScalper advocated trading indices with reasonable bid/ask spread. As for delta exposure, how about buying the equivalent 1 delta option? Thanks.
Sorry we took your thread in a different direction. Here are my comments on your original post: 1. Essentially you are making a directional bet and I understand your philosophy. It is important you have a good methodology that gives you a high enough probability. So, back test as much as you can. It is more than win rate, it is positive expectancy you are after. 2. I am with you, no complex legs, just simple singles. As an amateur, I am not smart enough to do complex combination and also found it not necessary. KISS. 3. First hour tends to be very volatile. I usually avoid it. 4. I am surprise you can achieve positive expectancy with just a time trade! 5. In my situation, I have not found trading on Friday a detriment. When I get in/out, I don't wait. 6. I am with you. I don't trade ETF/indices, too crowded. I rather take a large bid/ask instead of betting against the professionals. Regards,