The $SPY #Options #DayTrade just logged a 100% gain as per the “Simple Strategy” — 02/22/2024

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.

Michael Petryni


The Simple 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.

02/22/2024 — During the day…

Ah, NVDA, NVDA, NVDA…and an oversold #Nifty50StockList and despite a whipsawing NYSI, the market blasts up again.

This is the value of day trading the “simple strategy”:

It doesn’t matter what anyone guessed NVDA would do on its earnings announcement after the close yesterday. Or what anyone thought would be a fair assessment of its earning.

All that mattered was how the market would react today, and that would be registered simply by whether the calls or the puts would be above their opens just after the open today.

So the NVDA surge gaped the entire market up and today’s SPY 503CALL triggered its above-the-open buy signal and has since followed through to the upside for a 100% gain (see the chart below).

News, earnings, rampant punditry…some think those are worth obsessing about, but here with the “simple strategy” it is no more than watching the bouncing symbols and letting the market action tell what to do.

As the greatest market guru, Henry David Thoreau, has said: “Simplify, simplify, simplify.”

After an irritating, and generally dangerous whipsaw, the NYSI is rising again as I write this, with another low above a low on the NYMO to confirm the rise. If that holds, it appears the market may be try again to mount the rally I suggested a while back might go up into April.

We’ll see in the “fullness of time,” as the great Ed Hart used to say on the old Financial News Network.

(The white flag on the chart’s right axis show the dollars/percentage gain for each $1K put in the trade. Click on the chart for a larger view.)



Michael Petryni

Journalist, film critic, screenwriter, proprietary trader seeking simplicity in trading.