Keeping the broken record options repeating, another Put day — 11/09/2023

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 the calls; if the put options are above their open, buy the puts.

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

11/09/2023 — AFTER THE CLOSE

Two days in a row, puts for more than 100%…

The first day, Wednesday, the buyer came back into market and took the 100% gainer to a lose by the close of the day trade.

Not this time.

Today’s 439PUT ran up all the way into the close for a 263% gain.

That could be a shot across the bow of the bulls but I suspect it is just a way to make profits on a dip in the market and Friday could easily chop back up with calls.

As Ed Hart, the great commentator on the old Financial News Network used to say, we will know in the fullness of time.

If I may make a biased comment…isn’t it great to have day-trading strategy that doesn’t care about buying and holding and sweating out time decay no matter which way the market moves?

(The white flag on the chart’s right axis shows the dollars/percentage gain for each $1K traded. Click on the chart for a larger view.)