I've been day-trading futures for 2 years now. I'm looking to start trading longer term, daily charts. However, I'm not real comfortable with the size of the stops required in futures. I have never traded options outside of a simulator but I've spent quite a bit of time learning about them. The reason I've never traded options live is because, to me, they seem to good to be true. So I'm very cautious but I'm not sure why. Let me describe how I would trade options and you tell me your thoughts on it. Let's say, I think that somewhere between 1150 and 1100, the underlying price will reverse and go down to 1000. Price reaches 1100 and I buy an ATM 1100 Put option for 5 points. I can not lose more than $500 on this trade, had I placed this in the futures my stop would be $1000. I don't care if price exceeds 1150 before dropping to 1000, because I have 10, maybe 20 days until expiration for it to drop. Price reaches 1000, I sell my Put option. I know, theta, delta... I'd make a percentage of what I could in the futures but my risk is much lower and I don't have to worry about setting a specific stop. So what do you think? What am I missing? I am close or am I dreaming?