Its possible to operate Day trading with Options?

[traderforever 0]

Hi @jarad and options experts at BearBullTraders, I just joined the group and see that you have a LOT of experience in day trading stocks but I see practically no options except for swing. My question is, do you think it is possible to use BearBullTraders strategies, information and chatroom to do day trading with options given the level of capital required with stocks in addition to the leverage they offer?

Thank You,

 

[Abiel 474]

Tagging @JaradBBT

[JaradBBT 102]

Thanks for the question traderforever.

Just like using the shares of a stock as a tool to capture directional price movement, you can use Options as a tool to achieve the same result. Most trending strategies use options very well, as you typically have a defined area to stop out (usually a loss of morning support or some key level) along with good leverage in the position to capture a larger piece of the move. Quicker reversal or scalp strategies also work with options as long as certain factors are considered.

Knowing how to use options requires knowing how to day trade along with understanding when to use and when NOT to use options for a directional play. A trader without large capital may think trading higher priced stocks using options is inherently less risky, yet if they can't afford to hold 100 shares of the stock (or even the appropriate Delta share size), then they may lose more than expected on quick movements and large Bid/Ask Spread sin the Option Markets.

Short answer: Yes, there are similarities esp. with setups and strategies, but there are some key differences as well.

[zulkafil 38]

Hi,

The post is not new but I want to share my experience with option trading.  My first few option trades, I opened my positions and I hold until they expired. Then I started to close my positions after few days or weeks when the price moves according to my plan.  I don't want hold my money for a long period. Now I am trading options within a day "Day trading Options" and definitely I picked stocks in play. I also do swing trade. If anyone wants to day trade options, I will say first start with swing trade, understand price movement and earn experience.

Best of luck.