Thanks. I am still new to options, don't think could handle other types of options for now. If I want to trade SPY ETF option just Call and Put type, any suggestions if indicator is not a must? Thank you.
My honest opinion is to avoid option trading (single leg call and puts) totally and go trade individual stocks with shares. Due to the reason and example that TheBigShort listed. Try out call and put trading in a paper account to see if you are profitable over time (maybe 200 trades?)
Thank you. I am using a demo account to practice now. But I am trying to see what pattern or strategy is suitable for me.
Sorry, I am trying to understand your example. So if the option price goes up towards the strike price you picked for your call option expiring a week later, the premium you paid for the call option say is $2, I believe the option price would also goes up, something like $2.5 or $3, if you sell all your call options within the same day, you would be profit from it right?
Why are you trying to day trade options? Because Bijan Trades said so? I can understand you want leverage so you can make millions of dollars selling resistance and buying support but let me save some time and tell you to look at other ventures. But to answer your question. Lets do an example thats in happening right now. The market is down today and volatility is up. NFLX is quoting 44% vol. Lets say you see resistance and decide to buy the option. If the underlying moves up and volatility comes down you will lose money (or make little). If this is still hard for you to understand I would recommend to read a few options books first before you continue your journey on finding the optimal RSI parameters that will make you millions.