{"product_id":"stcov314exyo1","title":"Stocks \u0026 Commodities V. 31:10 (42-43): Explore Your Options by Tom Gentile","description":"Explore Your Options by Tom Gentile\u003cbr\u003e\u003cbr\u003eCAN OPTIONS BE DAYTRADED?\u003cbr\u003e\u003cbr\u003eHeres a question I get asked from time to\ntime when Im circling the globe to speak\nat events: Can options be daytraded for\nprofit? In the past, I would have answered,\nnot unless you want to give your money\naway over time. In the last year, however,\nI have changed my tune, researching and\neven trading options inside of a day. I\nnow answer with a yes, but answering\nthis question thoroughly takes more than\na one-word response.\u003cbr\u003e\u003cbr\u003eLets get one thing straight right now:\nThere is no 100% winning system. I\nknow; I have spent over half my adult\nlife trying to find it, and I have accepted\nthat no matter whether you are a technical\nor fundamental trader, its not out\nthere. If it is, its probably illegal. Now\nthat weve got that out of the way, lets\nconsider that with any option strategy,\nthere is a directional (or nondirectional)\napproach that a trader has to make. I\nhave a three-step process. Spotting the\nopportunity is first, and its not much\ndifferent for short- or long-term trades. If\nyoure technical, a chart is a chart its\njust that short-term traders have no room\nfor distractions. If youre considering\na directional trade, what type of rulebased\nsystem will you use to trade? In\nshort-term trading or daytrading, I use a\nsystem based on a breakout of resistance\nlevels (or a breakdown from support\nlevels) with a few other indicators that I\nmix in to determine the likelihood that a\nstock will rise or fall during the day. The\nexample in Figure 1 uses Apple (AAPL)\non August 9, 2013.\u003cbr\u003e\u003cbr\u003eAs you can see from the chart, this was\na snoozer of a Friday. Fridays are often\nsnoozers, due to the lack of government\nreports, though sometimes traders will\npush the markets one way or another\neither to get out of or to hedge positions\nahead of the weekend. Taking a short\nposition on 100 shares of AAPL for the\nbetter part of the day would have cost\nbetween $10,00045,500, depending\non the margin requirement at your brokerage.\nNevertheless, an $85 profit (the\namount the stock moved in your favor)\nfor the day isnt much when it comes to\nreturn on investment (ROI) on this trade.\nCould there have been another way to\nmake this paltry amount without putting\nup the cost?","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133928075633,"sku":"V31C10_634GENT","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_0857ed0a-3083-4cb6-9e6f-4fa72e39bb88.jpg?v=1739657827","url":"https:\/\/shop.traders.com\/products\/stcov314exyo1","provider":"Stocks \u0026 Commodities","version":"1.0","type":"link"}