The $SPY #Options #DayTrade for another 100% gain…08/02/2023

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 those; if the put options are above their open, but those.

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

08/02/2023 — END OF THE DAY

With the Fitch downgrade of the US debt and another indictment of the US Criminal-In-Chief, the market “took a dip.”

More like it dropped out of the sky.

Very good for the SPY 454PUT day trade, however, ending the day up 120%.

And once again, we can’t claim we were not warned.

One of the great reveals of the NYMO is how it winds down with repeated highs below highs leading to the NYSI turning negative (see the chart below).

The NYSI turned down today, generating a sell signal for tomorrow’s open, to go to cash, take profits on the rally, or to go short.

(Click on the chart for a larger view.)