$SPY #Options – #DayTrading puts as the market plummets

For twelve days the major market leaders defied the falling long-term breadth, measured by the McClellan Summation index (the all-important NYSI) dragging the general market high and higher on FED intervention (I guess) and irrational exuberance for the big, big tech stocks.

Well, today, the NYSI 13th day down, took care of that. Across the board, the indexes and stocks plummeted. The Dow was down 800 points, the Nasdaq Composite down 598. High flyers AAPL down 13%, TSLA down 14%, NVDA 13%, ZM down 14%. A lot of shock going around as exuberance gave to way how can this happen? Aren’t these stock things supposed to go up every day?

Funny.

Anyway, it was great day for day trading SPY puts:

The strategy for taking these trades is stated in this link: #DayTrading $SPY #Options – Buying calls and puts.

FIRST TRADE: 320%.

SECOND TRADE: SOME ICING ON THE DAY

#DayTrading $SPY #Options – after seven days up, SPY gets put

As SPY tried to gap into an 8th day up in a row, it was obvious any fall back through the open was trigger to buy the puts.

FIRST TRADE:

SECOND TRADE ENTRY:

SECOND TRADE CLOSE:

(CLICK ON CHART FOR A LARGER VIEW)

#DayTrading $SPY #Options – Buying calls and puts

The contents of this post appeared here last on June 11th. I’m lifting it intact because nothing ever changes in the 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 want to play that game?

But is it really a fool’s game, like everyone in options trading says?

For day traders
it doesn’t have to be. If the trader is persistent, disciplined and experienced, it almost never is.

Let’s take SPY options as the prime example — very liquid across multiple strikes, tight spreads, hardly any time decay on a trade for only a day, a stop-loss is close by and immediate, and the profits, if there is a trend for the day, can be substantial, even rather astounding.

Also great for scalping on any time frame intraday.

Again, the key, as always, is persistence, discipline, experience, and an entry signal the trader is comfortable taking.

$SPY #Options – #DayTrading calls on a FED day

The Federal Reserve announced its actions Wednesday in what was going be a foregone conclusion – nothing new, more to come.

So call that bullish.

CLOSING FIRST HALF:

CLOSING DAY TRADE:

$SPY #Options – #DayTrade on call Monday

The option day-trade play was the at-the-money 321 call for a 53% profit on one half and a 170% profit on the second half.

See tweets below for time stamps.

TRADING STRATEGY:

Buying SPY Puts And Calls

PROFITS ON HALF:

END OF THE DAY TRADE:

(Click on chart for a larger view)

$SPY #Options – #DayTrading Friday 6/26

Didn’t get around to compiling this blog entry Friday nor over the weekend. Was a bit numb from action of the day. Pleased, of course, since it was another dazzling day down to end the week.

Posting today (6/29) to as a record for this blog.

See the tweets below for the entries and results of the trades Friday:

FRIDAY’S 307 PUT AT 2.00. RESULTS: HALF UP 125%, SECOND HALF UP 175%.

FINAL TRADE FRIDAY’S 305 PUT AT 3.14. RESULTS; HALF UP 50%, SECOND HALF UP 63%.

$SPY #Options – #DayTrading Puts on a dazzling down day

SPY today dropped below its open twenty minutes into the day and never looked back.

So as day trading SPY options went, and at the risk of oversimplification, it was basically buy the blue, sell half into strength, cover on the rest on the yellow, rinse and repeat using ever lower strikes.

See the chart below for the color coding.

First – the 311 put, expiring today, for a 70% gain on one half, and a 50% gain on the second half.

Second – the 309 put, expiring today, for a 100% gain on both halves.

Third – the 305 put, expiring today, for a 50% gain on one half, and a breakeven on the second half.

This is what one always wants day trading options, a trending day down.

FIRST ENTRY AND EXIT

SECOND ENTRY AND EXIT

THIRD ENTRY AND EXIT

AND FOR GOOD MEASURE THERE WAS THIS EXCHANGE TODAY:

(click on the chart for a larger view)

$SPY #Options – #DayTrading Puts for a 28% gain late

The SPY 315 put, expiring Wednesday, triggered two trades today, one early and one late.

Tweeted the first trade entry at and exit 2.77 as it stopped out at breakeven after a tiny bounce. From then on the SPY hugged its doji open line virtually all day before signalling another buy on the 215 put for the final hour’s flush down and a 28% at the close.

Not much more to say except it was a pretty boring sideways day after the opening gap.

See the chart below.

(click on the chart for a larger view)

$SPY #Options – #DayTrading today’s calls for a 50% gain

The SPY 307 in-the-money call, expiring today, netted 50% for the day trade despite the initial entry being stopped out once at breakeven.

See tweet time stamps and the chart below.

FIRST TRADE ENTRY

SECOND TRADE – REENTRY

FIRST PROFIT TAKING

CLOSE OF DAY TRADE

THE 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.

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 want to play that game?

But is it really a fool’s game? Like everyone in options trading says?

For day traders it doesn’t have to be. If the trader is persistent, discipline and experience, it almost never is.

Let’s take SPY options as the prime example — very liquid across multiple strikes, tight spreads, hardly any time decay on a trade for only a day, a stop-loss is close by and immediate, and the profits, if there is a trend for the day, can be substantial, even rather astounding.

Also great for scalping on any time frame intraday but that, as they say, is another story.

Again, the key, as always, is persistence, discipline, experience, and an entry signal the trader is comfortable taking.

Today, again, was a fine day for the strategy.

(click on the chart for a larger view)

#DayTrading $SPY #Options – simplifying today’s put buy and sell for a 237% gain

The 315 in-the-money put, expiring today, netted 237% on the day-trade buy signal near the SPY open with a sell of half at up 215% and the second half at up 260%. Had the trade been held to the close, it would still have netted approximately 220%.

See the tweets (for time stamps) and the chart below:

THE 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.

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 want to play that game?

But is it really a fool’s game? Like everyone in options trading says?

For day traders it doesn’t have to be. If the trader is persistent, discipline and experience, it almost never is.

Let’s take SPY options as the prime example — very liquid across multiple strikes, tight spreads, hardly any time decay on a trade for only a day, a stop-loss is close by and immediate, and the profits, if there is a trend for the day, can be substantial, even rather astounding.

Also great for scalping on any time frame intraday but that, as they say, is another story.

Again, the key, as always, is persistence, discipline, experience, and an entry signal the trader is comfortable taking.

Today, again, was a spectacular day for the strategy.

(click on the chart for a larger view)