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I told a guy how to make 100% day trading options and I doubt he believes me — “Sideways Days” — 7/21/2023 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.
THE SIMPLE STRATEGY
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.
There are two key levels to trigger an entry into a SPY options day trade — the option strike’s open and the option strike’s low of the day (the LOD).
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.
The LOD signal, on the other hand, is complicated.
Besides a low of the day on the option’s strike, the LOD needs another indicator one can trust to give better chance of following through to the upside and ideally being a signal taken on the last low of the day.