Wiping out a month’s losses in a single day trade — 09/15/2023

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.

The low of the day signal (LOD) is much more complicated.

It takes a low of the day on the option strike and one other trusted indicator to confirm that this one, unlike lows of the day, is the one when the best chance of a reversal during the day. The “trusted” indicator IS the complication.

09/15/2023 — END OF THE DAY

After a spectacularly-profitable August, day trading SPY options through half of September was losing money…until today.

With five losing days in a row the simple strategy above was ground down 130%. a loss of $1,300 for each $1K traded going into the day.

But today’s SPY 449PUT wiped those losses out with a 171% gain at the close, $1,710 for each $1K traded, on…