The Market Giveth and the Market Taketh away — today’s $SPY #Options #DayTrade whipsawed itself all the way to hell — 07/19/2023

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 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.

07/19/2023 — END OF THE DAY

Today’s SPY 454CALL crossed the open signal four times, but what made it terrible was it hit the new, ever lower low-of-the-day stops until blew off 100% of the $1K allocated to each trade.

YUCK!

What can one say? It happens. That’s the market. Sometimes it wants every trader, no matter how fine the strategy, to pay some dues.

Remember this simple strategy has a 200% gain yesterday on the same signal.

(That green flag on the chart’s right axis tells the short for each $1K traded.)