Submitted by [deleted] t3_yzlcb7 in wallstreetbets
TheOhioAviator t1_ix5ul35 wrote
Reply to comment by MayoLovinApe in To the ones that swing trade spy calls or puts or get massive huge gains by [deleted]
Sure. For that example. You will tend to find the "safer" options are every 5 dollar strike. So the 405 will typically have more volume on it making it inherently "safer" to trade. IMO. Obviously if you can afford the 400 call go for that one.
I will also tell you unless direction at the open is very obvious I would advise waiting to place trades until about 10-1030. Traders trading at the open are taking gains from A.H. and PreM trading. Meaning if it's a 30+ open for the SNP then you can almost guarantee some profit taking will happen at open. Giving you access to better pricing for the solid move higher that's set up in the charts. Charts at 930 are basically useless IMO. Unless news, econ data, etc have set the days direction. Sometimes you can get a violent move at the open. If you're quick enough to get in an option going the right way you can realize huge gains at the open. Sell and be done for the day. And I mean be done for the day. No matter how much you make.
A small portfolio is limited by the day trading restrictions. You will almost guarantee, if trading at the open, you will make your gains and move on, once you move on from it you get reset mentally for the charts, watch for the action that signals the move, and buy in again. Once you sell though. You've now used 2 days trades. You can go in for another time all in that one day, but after that you're done for the next 5 days. Best to make your gains and come back to play later. There is money to be made at any time of the day. Don't focus on the open trades. They can get you in more trouble. Remember the market is open from 930-4. That's a long time for stuff to happen. That's a lot of time to make a trade. A safe trade.
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