Starting to develop a back for day trading "options"

Discussion in 'Options' started by TheFoot, Jul 31, 2020.

  1. newwurldmn

    newwurldmn

    when I was running our ISE desk I would have agreed with you!
     
    #11     Jul 31, 2020
  2. newwurldmn

    newwurldmn

    I can’t make heads or tails of that link.
     
    #12     Jul 31, 2020
  3. qlai

    qlai

    Can you please explain why day trading options is better/safer than just trading options?
     
    #13     Jul 31, 2020
  4. TheFoot

    TheFoot

    Sure, I mean I'm pretty new at this but happy to help. I dont day trading options safer or better for that matter. The reason I would like to do it as day trades is because I like to get in and get on crazy moving stocks because I like the quick action but I dont think day trading options is better more like equal to regular options. But that's just my opinion. I think options are safer over all. Both day and longer term. But again that just my opinion based on what I have experienced so for in limited action.
     
    #14     Jul 31, 2020
  5. smallfil

    smallfil

    You are not thinking this thru rationally. Do you realize that market makers make their monies keeping the bid and ask spreads as wide as possible? With options, the bid and ask spread at times can be the size of the Grand Canyon. Add to that volatility which can result in you overpaying for options then, volatility collapses and your are down quite a bit. If you are going to day trade, you are better off day trading stocks provided you have proper risk management and position size. Without it, you will just lose your monies.
     
    #15     Jul 31, 2020
    Bugsy and Ayn Rand like this.
  6. ironchef

    ironchef

    You just have to understand what @Same Lazy Element was trying to tell you - dead serious.
     
    #16     Jul 31, 2020
  7. TheFoot

    TheFoot

    Can you elaborate
     
    #17     Jul 31, 2020
  8. ironchef

    ironchef

    #18     Jul 31, 2020
  9. TheFoot

    TheFoot

    Yea that is the general consensus and it definitely concerns me that so many are seem to be saying that. I am treading lightly.
     
    #19     Jul 31, 2020
  10. ironchef

    ironchef

    There is at least one successful option day trader on ET: @jeffalvinson. He was quite generous in publishing his method. It was based on TA, a combination of scoring using both option and underlying price movements. Of course the devil is in the details that took him years to make perfect.

    If you are interested, you can search for he posts and study it for yourself.

    I tested it out, couldn't make it consistently profitable and therefore I don't day trade options.
     
    Last edited: Aug 1, 2020
    #20     Aug 1, 2020
    TheFoot likes this.