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Strategies & Market Trends : The Final Frontier - Online Remote Trading

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To: wiley murray who wrote (22)9/18/1997 10:07:00 AM
From: TFF   of 12617
 
Wiley: Daytrading requires liquidity and volatility. Options have volatility but no liquidity ( except for maybe S&P Index options).

I just complete a trial run daytrading options and IMHO it is very very very difficult to do successfully. Here's why:

the spred between the bid/ask is huge

there are not alot of players in the market

options have a mind of their own and will not necessarily move in tandem with the stock

you can't hold options if you wrong ...they go to zero - qickly

Getting good fills on options is next to impossible

Fills are delayed on the floor

The option market is slow to open in the morning

If you want to trade options because you require less capital - don't. Your better to save up the capital needed to daytrade stocks. Trust me it's waaaay simpler.

Good Luck!
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