I rarely come across a trader that has not traded options. Options Cafe Newsletter Get our latest news delivered to your inbox. Theres 6 pivot points here all the way to zero. In a bull market, the SPX will consistently be supported by its day moving average and rise above it. That leads to me my question - what percentage stop do you use, and does it vary depending on your entry point? This chart was done maybe back in august? Have a blessed day!
For traders with high conviction that SPY will sell off during the course of any given week, a short-term options trade can be quite profitable. Finally, in terms of both win rate and average return, SPY put .
TRADING STOCK OPTIONS
For those who do day trade SPY options, any tricks or tips? My 1 rule for day trading is to make sure it's a DAY trade. Holding a day trade over night can easily blow up a profitable position. Don't get greedy and take a solid profit when you can. My 2 rule is to make trades per week MAX. But this week, I saw often times that the AAPL stock price violated my assumptions for purchasing options. Ultimately, I decided to stick in and I came out profitable somehow.
That leads to me my question - what percentage stop do you use, and does it vary depending on your entry point? What time frames for MACD do you look at? I only look at 12,26 atm. Also, what delta do you look for as a minimum?
I'm usually OK with a delta of as low as 0. The hard part of that is determining exactly how many times over you are making money. It's a good problem to have but one you should be prepared to face. Thanks again for your response!
I trade SPY options. I trade weeklies that are expiring, near the money, and in bundles of usually. I can hold from 5 minutes to 5 hrs, but don't hold overnight. I only buy options, drawdown is too much for me to sell. I'm pretty much scalping, but if I quickly get some profit on the trade I'll stay in for the ride.
And I'm stupidly using ToS. I like the volatility and pricing that happens later in the week. I noticed that paper accounts will just excute the trade; while in real life sometimes it takes the market a few seconds to decide where it wants to price. You can get burnt in a wide market and market orders, conversely, limit orders can be slow to put together and track price action in a quick moving market.
Figure out a system that works for you. Personally I map the options that I'm looking at to a 2 grid window, each option has a chart, active trader, and time and sales.
I have it set up with active trader for 1 click trading for a variety of orders. Where do you get your level 2 quotes I'm going to guess TOS? I realize that paper account execute trades instantly. For this reason, I would also put my limit order below the market price even in paper trading to simulate this fact.
I don't use optionshouse that much, I'm using suretrader. It's even worse, can confirm. I use it because it allows me to circumvent PDT rules. I've had this happen to me way too many times, and I end up bagholding - thankfully it's just paper trading.
Any other good indicators that can help prevent these false positives? No, use historical volatility to forecast potential pivot points. Break that range into 4ths, and if you extend those ranges up and down, youll see theres lots of activity near them. Right now im just trying to figure which pivot points are more likely to give a rebound.
Im thinking it has to do with some economic events,earnings, news releases. This is a chart of TD. This chart was done maybe back in august?
So, while i have no clue which one its going to pivot off of, you can see that it does generally pivot off these levels. Thanks for the example! I am using tradingview right now as well not TOS , and I like it a shit ton.
Theres 6 pivot points here all the way to zero. Overall I am in plus since January 1rst. My result on these stocks are mix. I usually give it back what I make next day. It seems to me SPY works the best, esp with an account under 25k that way you choose best 3 trades in a week rather than jumping into every setup. I have been observing its behavior on Friday.. I have seen SPY do crazy things on Friday I am on the other side of his strategy I sell naked puts and calls on spy..
I am tempted to do one day plays.. I make a bet that.. Actually First time I traded wednesday expiry last week. I was little nervous. Same thing like friday expiry. Pretty much I always give myself 5 to 6 days the most for expiry. Only mondays I trade same friday expiry. Again I close my position at the end of the day. I have been burned so many times so keeping overnight is NO NO.
I try not to trade on Tuesdays. Never had a good luck, usually low volume with no news. Friday can be a hit and miss. Especially options expiry weeks. You get the most for your buck. Even numbers can be used as a support and resistance. I fade these extreme readings. I have a friend he only buys vertical to keep overnight. He has a formula he acn guess gaps which sounds to me like gambling. It's all about what it works for you. Look at the last friday market action after the job report.
It's all about sticking your rules. You must log in or sign up to reply here. Your name or email address: Do you already have an account?
Oct 10, · The best part of trading SPY is low IV. You get the most for your buck. SPY moves slow, not like FANG which requires patience. Even numbers can be used as a support and resistance. I have text alert for tick or + tick readings. I fade these extreme readings. one last thing darwin; if selling puts or calls working for you then stick with it. Our weekly options trading strategy allows us to make extremely profitable trades with only a single trade per day. We trade highly volatile and highly liquid SPY and SPX weekly options. The market was transformed a few years ago, with the introduction of weekly options. The options butterfly spread is a low-risk options trading strategy that stands a high chance of producing a small profit. The butterfly options trading strategy uses four options contracts to produce profits off of price stable markets.