StockFetcher Forums · General Discussion · Short Term Option Genius, opinion Please!<< >>Post Follow-up
woofys
212 posts
msg #55924
Ignore woofys
10/22/2007 9:09:07 PM

I have studied options, long term or intermediate not much of a problem.
But short term trading of options bugs me. Can I scalp the market with options, day trade 1 to 5 days? Terisa Lo and Larry McMillian claim they trade a-t-m options no more than 2 weeks from expiration. Little time value left so premium is cheap. I've also thought about buying way in the money options to get rid of time value. Any help is greatly appreciated.

msummer2007
129 posts
msg #55930
Ignore msummer2007
10/22/2007 10:48:32 PM

I trade options exclusively. Yes you can trade at the money's in the nearest month and make money. There is only 1 caveat , you must be nimble. If the direction is against you, cut your loss right there and then. Failure to do so will kill you. Also, If you trade in the money's the same rules apply. Another important point is liquidity, only trade options that have a daily average of at least 300 contracts, otherwise the crooks at the cboe keep the bid and ask to wide. Basically it is like trading with a huge Vig. I found in my trading, you should exit the option the same day. Win, lose or draw. I hope this helps.

karennma
6,386 posts
msg #55950
Ignore karennma
10/23/2007 3:07:20 PM

msummer:
I can't imagine getting out of an option the next day or the same day.
I just got out of RIMM option on this rally, and I felt I got out too soon.
You must be tradin' your a$$ off.
I couldn't buy and sell options everyday.
That would drive me nuts.


karennma
6,386 posts
msg #55951
Ignore karennma
10/23/2007 3:08:45 PM

I hate to watch my option go up after I sell it.
:>(


karennma
6,386 posts
msg #55952
Ignore karennma
10/23/2007 3:22:03 PM

MSummer:
How many option positions do you usually have open at one time?


msummer2007
129 posts
msg #55953
Ignore msummer2007
10/23/2007 3:26:42 PM

You are correct Karen, that is why I trade longer term now. My win loss percentage, day trading options was decent, but it was still to hectic. Plus that spread is difficult to overcome. Now I normally trade 3-6 month options, and spreads. Another point, I do not have to watch the screen all day, that in itself is exhausting. Getting away from the computer allowed me to get a life!!!

karennma
6,386 posts
msg #55954
Ignore karennma
10/23/2007 3:43:39 PM

Yes!! I agree.
With the options, you have freedom.
Eventho' I must admit, my stomach is still tied up in knots over RIMM.
I HAD to let it go. $12 in one day! Geesh!
Option trading FORCES me to take the money and run!
LOL!!


karennma
6,386 posts
msg #55955
Ignore karennma
10/23/2007 3:45:33 PM

Now, I'm still screwing off with that POS, NTRI.
Everytime I see "How to find the next NTRI" ....
I think, "I DON'T think so!"
Pass the pepto bismol please.


karennma
6,386 posts
msg #55956
Ignore karennma
10/23/2007 3:52:59 PM

MSummer:
Ya' know, if SF had a point and click candlestick feature, it would help me a lot.
Sometimes I misinterpret those candles and I'm screwed the next day.



woofys
212 posts
msg #56019
Ignore woofys
10/25/2007 1:06:37 PM

msummer2007
and
karennma thank you guys you are the greatest.





StockFetcher Forums · General Discussion · Short Term Option Genius, opinion Please!<< >>Post Follow-up

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