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lucian_dinu

Scalping Options

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Hi Guys,

Interested in Scalping options, sharing your knowledge on this is much appreciated.  First thing that I would like to understand is how do you choose/select options to scalp for the day. 

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Hi Lucian, 

Hope you've been well! I've been scalping options the last couple months. I am still looking for stocks in play when selecting options to trade for the day. I will say that i am trying to focus on a core group of 10 larger cap stocks and trade them when they have news or RVOL is high as i know that liquidity in them is good e.g TSLA.  This also helps me to understand how each of these stocks trade which i have also found beneficial. 

Hope that helps!

 

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Hey all I've been getting into this as well.

When looking for a quick scalp what DTE are you normally looking at @nadersajj ? The same week or farther out/

I'm finding what is really playing into my decision process lately are the spreads on the contracts, man they get wide at times and if you're not careful a good looking trade can either break even or turn bad pretty quick just cause of the spread.

MiTCh

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Hey Mitch, 

I am looking at the same week for scalps. 

Yeah the spreads can be a killer. I try to trade the options with the highest volume or open interest to negate the spread as much as possible. That's the tough thing about scalping options, a trade that would be breakeven if trading the stock will most of the time be a loss on the options trade. Some stocks i dont think are really tradeable as scalps as much as i would like to trade them at times because of their spreads (e.g SPOT, SHOP).

Let me know how you go, i'm keen to connect with more options scalpers and learn of each other!

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Right now just trying to focus on remembering that calls and puts are a potential tradebook option when I get pretty committed to the idea that a move is coming or a trend is going to continue throughout the day . . .  normally I get to the journaling stage of the day and look at the plays i made and go "d'oh, i could have just bought some calls lol

 

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On 12/11/2020 at 11:55 AM, Mitch The Duck said:

Right now just trying to focus on remembering that calls and puts are a potential tradebook option when I get pretty committed to the idea that a move is coming or a trend is going to continue throughout the day . . .  normally I get to the journaling stage of the day and look at the plays i made and go "d'oh, i could have just bought some calls lol

 

Same thing happened with me when GME put in its backside.

I forgot it was at one time a large cap stock that should have a option chain, but buying puts would have been amazing.

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