Today’s #Options #DayTrade — $SPY 393Put up 164%

This chart is set to display return per $1K in play in the white flag on the right axix ($1645 for each $1000 in play), the #1Kdaytrade on Twitter, and the #10Ktrade in dollars in the green flag on the right axis ($16,450 for each $10K in play).

All signals and trades in these (strikes and expirations change daily) are based on this simple:

TRADING STRATEGY

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, 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…