Daytrading

[divs4ever]

This means that you can be in/out of a trade very quickly.

the 'very quickly ' ( and reliably ) part was the glitch that made short term trading ( less than a week ) , a glitch i could not work around

i am not saying 'don't ' just check how reliable and fast your trading platform is to access/refresh , my setup was taking minutes to just refresh the Iress page so goodness knows how stale the 'live data' was

learning new skills is fun , losing money while learning is way less fun

 

[ducati916]

Always good to sell in the top box and then wait for resistance similar to a electronic circuit board, selling when the current is high.

And how to build your box:





So moving left to right:

(i) the top on March 20 is your base;
(ii) the open on March 21 is your top..........just extend your box out until it's violated.

(iii) It's violated on April 2
(iv) Redraw using the low of April 2 and the base of April 1

(v) Now on April 5 you have a new base. You use the top on April 4 and the base on April 5 and just project that out into Monday.

(vi) Your high probability is the smaller box contained in the last box.

(vii) If on Monday the box built today is violated, start the process again.

jog on
duc

 

[ducati916]

A potential swing trade for Monday:



So 17 May Expiry (gives you a month for the trade to work)



Buy Call $65 @ $1.90'ish
Sell Call $70 @ $0.70'ish

Risk = $1.20
Reward = $5.00

Nice R/R ratio of 4:1

jog on
duc

 

[wayneL]

A potential swing trade for Monday:

View attachment 174181

So 17 May Expiry (gives you a month for the trade to work)

View attachment 174182

Buy Call $65 @ $1.90'ish
Sell Call $70 @ $0.70'ish

Risk = $1.20
Reward = $5.00

Nice R/R ratio of 4:1

jog on
duc

Options are great for swing trading, even just the straight buy to open.

Going back to the OP however, not so good for day trading because of the buy sell/spread (and usually higher commission) aka "contest risk", regards to the stop loss question, great point Duc.

Never forgetting that the risk reward profile of options is never linear. This has both positives and negatives as defined by the Greeks... Theta mentioned above is potentially a negative *in bought options*, gamma a positive and vega can be either.

These can help you to define your actual risks and rewards and in the selection of strikes and expiries.

Yes more complexity, but worth learning IMO.

 

[ducati916]

So another strategy you can swing trade, although you can daytrade this also, 'Pairs Trade'



You see that NEE is the largest holding in XLU. The prices converge over time. So long NEE and short XLE

One to watch:



JPM as opposed to BRK (have a look at the share price LOL). Probably too early just yet.

If you use Options (Put and Call) you need some time on them. If using stocks, got to watch both as if you start to lose on both sides, not a happy place.

The BIG advantage is that it is 'market neutral'. As long as the gap closes, market can be bull or bear, no issues.

jog on
duc

 

[ducati916]

So just an update on KOS














So down a tad with 10 days remaining.

jog on
duc

 

[ducati916]

So moving nicely. In a perfect world hits $7+

jog on
duc

 

[ducati916]

So an update:



Making nice progress.

Ideally I would like to close this trade next Wednesday (it expires on Friday) to avoid having to deal with any potential exercise of the short option. With Tastytrade I can leave an order that if exercised, the stock is immediately sold at market, which saves me watching the thing.

jog on
duc

 

[ducati916]

Step backwards today re. price:



The theta decay is starting to bite now. Wide spreads in the bid/ask spreads.

jog on
duc

 

[ducati916]

So a trade for tomorrow:

Butterfly:



Trade will be 2 weeks

Buy Call $68 @ $2.01 x1
Sell Call $70 @ $0.95 x2
Buy Call $72 @ $0.52



I'll add a second trade as a potential:



Also a Butterfly with 2 wks to run.



jog on
duc

 

[ducati916]

So I have entered a very small position:

View attachment 174093

I did a PUT Vertical. Which is a bullish trade. Limited my risk to $0.17. Expiry 19 April 2024.

View attachment 174094

Which was pretty much at the time I entered the trade.

So the plan behind the trade:

(i) Market is bullish a +3 this week
(iI) In the energy sector which is scored +3 is also bullish
(iii) the stock has (in my opinion) a bullish set-up and should benefit from overall market and sector bullishness

Used Options because:

(i) I hate stops
(ii) Can define the risk w/o a stop loss in the market or even worse in my head
(iii) Can set the trade up as a credit (unimportant in this tiny trade but put 1000 contracts on and more significant)

Negatives with Options

(i) Have to get the timing as well as direction close to correct
(ii) Theta can be an issue
(iii) IV can be an issue (managed via a spread)

Catalyst:

Has an earnings event in May. Now expectations should be bullish which will help move the stock higher into those earnings. My trade will be over before those earnings are announced.

jog on
duc

So I have now closed the trade:



Which resulted in a $0.07 loss or $7.00.

My commissions were only on the opening side of the trade ($3 ($1.50 leg)) nothing to close. So a total loss of $10.

I'll be over on WayneL's Options thread with trades etc. Just wanted to bring this trade to its resolution.

jog on
duc

 

[qldfrog]

So I have now closed the trade:

View attachment 175019

Which resulted in a $0.07 loss or $7.00.

My commissions were only on the opening side of the trade ($3 ($1.50 leg)) nothing to close. So a total loss of $10.

I'll be over on WayneL's Options thread with trades etc. Just wanted to bring this trade to its resolution.

jog on
duc

if your fees are more like $10 echa way, and usually more, that starts to bite in percentage..you really need a good broker to play with these..as per talk in Wayne's thread

 

[ducati916]

Daytrading...LOL



jog on
duc