Have I mentioned the open is important? #SPY #Options 02/09/2023

The Simple Strategy To Day Trade Stocks, ETFs and Options.

I have mentioned this simple strategy in relation to day trading options in this story: I told a guy how to make 100% day trading options and I doubt he believes me but the same simplicity also applies to stocks and ETFs.

Here’s how this simple strategy works: if the stock or ETF or option is above its open two minutes into the day (or whatever time frame you prefer) it is a buy, below its open it is a possible short.

The open subsequently becomes the stop loss or the low of the day if you prefer that much risk.

Simple as that.

And as initially discussed in the options link above:

Options can be the best of all since options take less money to play and can give the biggest bang for the buck. Particularly in SPY, and AAPL and TSLA, and a few more stocks with huge volume and tight spreads.

The SPY 415PUT, expiring today…

When I saw the overnight futures were up on the open, 30 some points on the ES, my first thought was don’t those guys know the NYSI is down?

Evidently not…

Today’s PUT made more than 300% on the day trade strategy, $3,000 for each $1K traded. See the white flag on the chart’s right axis below.