I hear a lot of people say that you can't do well daytrading options because of the spread. I day trade index options (1 trader per day, holding time 20min-4 hours). I use a limit order and go in between the bid and ask for entries and exits. I don't understand the problem.
you mean ETFs on stock indexes?...but yea ETF options are tradable. when you start trading stock options that are not part of the penny pilot program then the spread starts to cut into your profits. and y only make 1 trade per day if you are day-trading? is that like a hit or miss strategy - where you risk all your account on just one trade and hope that the trade works out.
I mostly trade NDX options but am considering switching to RUT. One trade per day because I have less than 25K so I use a cash account and after the first trade my funds are unsettled until the next morning. This way I can make 5 day trades per week with less than 25K. I use a 10% stop.