Aliassmith Beats a "Dead Horse"

[aliassmith]

ProTip

If you want to daytrade options without having a $25k+ account use a cash account because options settle overnight. This means with options you can trade your full funds unleveraged once per day without triggering the pattern day trader rule.

If you close an option trade on Tuesday those funds will be available on Wednesday.

Thank You bud. In terms of instructions, is it better to stick with bigger names like Telsa, FB,Apple etc.? How do you decide what you'll trade, based on chart PA?

Price action of the underlying and value of the options.

[IgazI]

I'd recommend buying as much time as you can get your hands on, while paying a 'good' price, & averaging down the cost of the option over time; I'm talking 8+ months.

I wouldn't suggest anything closer than 5 months for OTM, 4 months ATM, ITM's for everything else.

Time is the most important thing, followed by the price that you pay for the option, & lastly the price action.

[Mira]

Kreslik sweet kreslik
How are you guys? How’s the board going?

Wow I really don’t know a sht about options, that would be cool btw!

[aliassmith]

I'd recommend buying as much time as you can get your hands on, while paying a 'good' price, & averaging down the cost of the option over time; I'm talking 8+ months.

I wouldn't suggest anything closer than 5 months for OTM, 4 months ATM, ITM's for everything else.

Time is the most important thing, followed by the price that you pay for the option, & lastly the price action.

That is one way to handle it. It probably would keep "newbies" out of a lot of trouble.

In the end it depends on your strategy.

How about an option within 2 strikes of the current price with a 3 to 7 DTE? Hold time 1 ro 3 days.

[aliassmith]

I'd recommend buying as much time as you can get your hands on, while paying a 'good' price, & averaging down the cost of the option over time; I'm talking 8+ months.

I wouldn't suggest anything closer than 5 months for OTM, 4 months ATM, ITM's for everything else.

Time is the most important thing, followed by the price that you pay for the option, & lastly the price action.

That is one way to handle it. It probably would keep "newbies" out of a lot of trouble.

In the end it depends on your strategy.

How about an option within 2 strikes of the current price with a 3 to 7 DTE? Hold time 1 ro 3 days.

You still need to know how to analyze charts!!!!!!

The last 4 option trades were within 2 strikes of the underlying price. Between 3 to 10 days DTE. Buying Calls.

From Memory:
AAPL 100% in 2 days
AAPL 110% in 2 days
AAPL 32% in 2 days
SNAP -15% in 2 days

On the conservative side that could be 1% return on account.
On agressive side that could be 400%.

Im not recommending anyone trade options or how to manage your risk. I'm sharing my experience.

You could make 6 month synthetic positions and collect premium on them.

There are too many ideas to go over.

[IgazI]

I didn't say that you didn't need to know how to read charts, I said that it was the least important part of trading options; don't buy enough time or pay too much for your options or run out of BP and it doesn't matter how good you are at reading charts.

[aliassmith]

I didn't say that you didn't need to know how to read charts, I said that it was the least important part of trading options; don't buy enough time or pay too much for your options or run out of BP and it doesn't matter how good you are at reading charts.

I didn't mean to imply that.

My statement was more of a public service announcement.

[aliassmith]

Non-farm today, I think I'll sleep in.

[buffalo]

Would you wait until price closed below the orange line to short?

index.png (43.24 KiB) Viewed 1628 times

[aliassmith]

Would you wait until price closed below the orange line to short?

index.png

I don’t understand, it is already closed below the orange line.