Another day, more filthy lucre in the $SPY #Options #DayTrade…08/14/2023

THE SIMPLE STRATEGY

They say buying options is a “fool’s game” and day trading options is impossible. So let’s say right off — they are wrong about that.

TRADES are based on this simple day-trading strategy to be on the long side of the calls and puts for day trades; and referenced in this story — I told a guy how to make 100% day trading options and I doubt he believes me.

The open signal is clear and truly simple.

If the call options are above their open, buy those; if the put options are above their open, but those.

That’s it, but use a stop-loss to control risk.

The low of the day signal (LOD) is much more complicated.

It takes a low of the day on the option strike and one other trusted indicator to confirm that this one, unlike lows of the day, is the one when the best chance of a reversal during the day. The “trusted” indicator IS the complication.

08/14/2023 — END OF THE DAY

Pretty straightforward trading day…

The SPY 444CALL, except for that chop at the open, finally took off and ran up to it target 100% gain, $1290 for each $1,000 traded to close out the day trade.

(The white flag on the charts right axis shows the trade at the end of the end, the green flag shows the losses at the open of the day. Click on the chart for a larger view.)