#DayTrading Stock Options in the Fool’s Game

With the all-important long-term breadth now declining, stock options trading has shifted to the puts.

Long-term breadth turned down on 2/28 triggering sells, and bearish swing context for the general market from the open of 3/1. Despite the blip up Friday, market direction remains most likely to be down.

In additions, short-term breadth turned down today in negative territory, and prices across the indexes reversed a gap up on the day.

Hence, going long puts. See posts below for more discussion on criteria for the trades.

Today’s entries, despite small losses in AAPL and BABA, as a $10K day-trade basket ($2500 in each positions) was up 18.8% for the day, driven by a 36% gain in the TSLA 300, and a big win in the NFLX 360. All put positions are weeklies, expiring Friday.

(click on the the chart below for a larger view)

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