Swingtrading with options

Discussion in 'Options' started by trader1974, Nov 6, 2019.

  1. trader1974

    trader1974

    Is it better than with futures?
     
  2. trader1974

    trader1974

    If you think there will be a price shift up between 4 and 12 weeks, is it not better to buy calls? To sleep peacefully ...
     
  3. Like when Joe Biden was asked if he wore boxers or briefs, he answered "Well...Depends."

    Do you have a method that can with decent probability gain several percent? If so, just see for yourself. Look at your last few trades. Use your broker's data to see if buying an ATM or ITM 1-2 month call at what was your futures trade entry. Then see what it would have sold at when you closed the futures trade.
     
    remogul92 and trader1974 like this.
  4. trader1974

    trader1974

    I have experience with futures but not with options. I see 2 advantages: I can use more leverage and sleep more calmly if I buy calls instead of the future. Disadvantage: I lose the premium, the movement must be broad to be profitable. Anyone who does this type of trading can advise me?
     
  5. lindq

    lindq

    Long calls or puts can work for you IF you have a very strong system for the underlying that consistently delivers big gains short term, and if you have strong volume with tight spreads.

    Otherwise, you'll just bleed your account.
     
    rafatort, Pkay, ironchef and 2 others like this.
  6. trader1974

    trader1974

    I usually trade the Dax by swingtrading and for the moment it works well for me, the idea of using options is to be able to use more leverage and be able to sleep more peacefully. I understand that with the purchase of calls I can only lose the premium, am I right?
     
  7. trader1974

    trader1974

    If you have the capital to pay the premium and you catch a broad three-month movement, I think it can be a great deal.
     
  8. lindq

    lindq

    Yes, you are only at risk for the cost of the position.

    The only way for you to know if calls would work for you is to make a few trades and watch them develop. Everything else is just speculation.
     
    rafatort, nooby_mcnoob and trader1974 like this.
  9. Handle123

    Handle123

    Trade Futures and hedge it.
     
    TooEffingOld and tommcginnis like this.
  10. why
     
    #10     Nov 6, 2019