The #SimpleOptionsDayTrade — $SPY for 100% — 4/11/2024
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.
DAY TRADING OPTIONS
There are so many options strategies in the stock market the head spins — a straddle, a strangle, a naked and/or a covered put and/or call, a calendar, a condor, an iron condor, an iron butterfly (isn’t that a rock band?) and any combination of any of these for hedging purposes, for capital appreciation or preservation, for gambling. Mind boggling.
But buying options…
Buying options, just plain buying a call or a put, everyone will say is a “fool’s game.”
Regardless of whether a trader buys calls or puts on index ETFs like SPY or QQQ or IWM, or buys options on stocks like AAPL, there are only three things that can happen — the option goes the trader’s way (good), or the option goes against the trader (bad), the option goes sideways with price decay over time (also bad).
Two out of the three possibilities for the option buyer are losers. What fool would want to play that game?
But is it really a fool’s game, like everyone in options trading says?
For day traders it doesn’t have to be.