I told a guy how to make 100% day trading options and I doubt he believes me — 5/18/2023 update

They say buying options is a “fool’s game.” So let’s say right off — they are wrong about that. The market and its stocks either go up or they go down. It’s amazing how hard it is to recognize that simplicity.

Michael Petryni

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Back to when this simple strategy first went public — posted on September 26th, 2021.

Today’s examples (more below the Reddit thread below):

5/18/2023 — During the day…

(The white flag on the chart’s right axis shows the current dollars/percentage gain for each $1,000 traded. The green flags show the closed trades. Click on the chart for a larger view.)

This started the Reddit thread on September 26th, 2021:

I’m looking for an explanation where a specific TSLA call option (and a few others OTM) dropped about 9% in value in just 2 minutes when the the underlying was actually going up.

A long discussion of the Greeks effect on options’ premiums in relation to the underlying stock (in this case, TSLA) including the usual delta, theta, gamma and volatility measures then took place. I didn’t read any of that because my eyes glazed over as soon as I saw the Greek army coming at me.

Instead I replied:

This why I day trade options on stocks. I can’t do the Greek math. American math is hard enough.

So instead if it’s above the open buy the call. If its below the open buy the put. They said buying options is a “fool’s game.” They are wrong about that.

There’s a 100% plus gain on the day trade almost every day. Yesterday, the weekly NFLX 590 Call, expiring Friday, peaked up 200%, finished the day up 94% and was in cash with no overnight risk afterwards.

Him:

How do you determine you entry and exit points?

Me:

Just what it says, if it’s above the open buy the calls, if it’s below buy the puts. Today, that was…

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Michael Petryni

Journalist, film critic, screenwriter, proprietary trader seeking simplicity in trading. https://thegodoftrading.medium.com/membership