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Strategies & Market Trends : DAYTRADING/SWINGTRADING STOCKS with INTRADAY INVESTMENTS

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To: KymarFye who wrote (104)5/26/2001 3:01:49 PM
From: -  Read Replies (1) of 565
 
Yes Kymar that is correct. For shorter-term trades, especially the intraday stuff we're mostly looking at how "pumped" the option is, and making sure the open interest/volume is good before trading it. e.g. when a stock is running the implied volatility can jump up, so we would not buy an option even for a daytrade if that gets out of whack. Usually even in a daytrade we would be slipping into a put or call when the underlying is quiet, to try and get the implied volatility ("option juice") factor into our favor. If you can do that, a lot of times you can make money (or, avoid losing it) even if the underlying doesn't move in your favor. All well-known and understood by most option traders, of course...

Agree about the prospects for more stock-trading "survivor traders" discovering the wonders of the CBOE... and the CME/CBOT too. I've noticed a lot of them are also moving into trading the S&P Futures, eMinis, Naz futures, and Bonds as their sophistication with the markets grows. We trade all three (stocks, options, and futures) as appropriate, with stocks being our "bread and butter".
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