Yup, another 100% day in the $SPY #Options #DayTrade…08/16/2023

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.

08/16/2023 — END OF THE DAY

Pretty straightforward trading day again…

Wait a minute, wait a minute…two days ago the SPY 444CALL scored a 100% gain (see the post below).

Now it’s the SPY 444PUT!

Took half the day to get started but got it done by the close.

(The white flag on the charts right axis shows the trade at the end of the end, the green flag shows the losses. No losses today. Click on the chart for a larger view.)