The #SimpleOptionsDayTrade — taking at least the $SPY 100% when you have it— 5/28/2024

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.

The Simple Options 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.

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.

5/28/2024 — End of the day.

SPY looked like it wanted to sell off today, gave a run at the open, changed its mind and bounced, ran sideways below the open until mid-day and plunged.

Whew!

But that plunge mid-day ran today’s SPY 531PUT up nearly 200%, wiping out the early losses (see the chart with the stops below), up 170% when I captured this chart before the put faded into the close, still leaving a 100% gain to be pocketed on the day trade.

Whew! Even that sentence make me teeter totter.

(The white flag on the chart’s right axis shows the dollars/percentage gain for each $1K put in the trade. The green flag shows the closed trades at that point. Click on the chart for a larger view.)