#Stock #Options #Daytrade — 05/05/2023

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.

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 LOD signal is complicated but can be spectacular.

The Open Signal is clear and easily executed. If the call options are above their open, buy those; if the put options are above their open, buy those.

05/05/2023 — During the day…

Some days when SPY is trending above its open it drags stocks with it.

NVDA up 200% on this expiration Friday. MSFT up 100%. AAPL lagging, TSLA lagging at up 70% but more day to come.

(The white flags on the charts’ right axis show the dollars/percentage gains for each $1K traded. Click on the chart panel for a larger view.)