Day trading options for income have become a very popular strategy. Traders are trading SPY options because they are the most liquid options on the market. But before you start trading your hard-earned money, you need to know options. Then decide if SPY options are a good route for you. You need to have a trading plan and strategy, so you don’t fall into the category of traders who are not successful.
SPY is the oldest exchange-traded fund which started back in 1993 and options contracts followed suit. SPY has a huge options market and trades thousands of contracts a day. It’s a liquid market with a wide variety. SPY options are standardized, they follow the “regular” expiry dates for most options. The options expiration happens on the Friday before the 3rd Saturday of each month in the US (each month).
Knowledge allows us to think about issues, topics, and challenges from many perspectives. Wisdom allows us to succeed by putting what we know into action. Physical power has its limitations. But knowledge will let you do great things that have never been thought of before. The richer the knowledge is, the more smoothly and effectively the cognitive process operates.
SPY options are the most liquid options a trader can trade. SPY options have high open interest, and they also have a high volume. The best part of SPY options is that you have 3 different options that expire each week to choose from. Monday, Wednesday, and Friday. As a day trader, you don’t have to trade the zero-day to expiry. You can opt into trading the next expiry or the Friday expiry up to Friday; then trade the Monday on that day. The idea is that day traders will use the short-term expires to trade options more so than multiple weeks out.
Short-term options on the SPY are extremely liquid. They are cheap and have the potential to change a lot. Options day traders shouldn’t go farther than 7 days out in terms of expiration. At that point, you are paying a lot for the options time value which you will not be using. If you don’t use more than a day of time value, there is no use to buy that much time. Day traders should not turn day trades into swing trades unless you are set to buy more time or roll the options.
Day trading technical analysis for the SPY is pretty simple. You never want to make things complex with multiple indicators, which can confuse you. What you’ll need are time frame analysis 1 min charts, 5 min charts, and the volume histogram. The 1 min charts will be used to enter and exit trades. The 5 min charts guide you to look at trends that are occurring or have already occurred. You’ll need a well-tested strategy in which that will be the core to making your trades profitable. The SPY is a combination of 500 large-cap companies in the US and has daily moves that can be extremely opportunistic with the right strategy.
Day Trading Spy Options: Strategy
Firstly, you need to know options. Too many traders enter the options market with a naive dream of becoming rich overnight. You need both theoretical and practical knowledge. In options trading, you can lose money even if you are right about the market direction. This is because there are many factors influencing the price of an option. To build your confidence, you need to research, train and practice your trading strategy.
You’ll need to first open an account and use a trading platform in which you can practice your strategy; TD Ameritrade thinkorswim is a good one to use. It is extremely user-friendly and accessible from any smartphone, laptop, or desktop. With TD Ameritrade, the four levels are covered, standard cash, standard margin, and advanced. The thinkorswim platform is excellent for options traders, it has tools and lets you monitor the market. You can plan your strategy, and implement it in one convenient, easy-to-use, combined place free of charge. In addition to there being different levels for trading, there are more than 400 indicators in thinkorswim to assist you with your trading.
Once you enter the market, I suggest only purchasing one contract until you are consistently winning most of your trades for that week. Keep that momentum and if it is the same for a few weeks then you can start increasing contract size and repeat the same method. This is done to practice risk management and protect your capital. To start trading options, you can start with as low as $100. The amount you begin with is completely up to you. Trade with money you can afford to lose; because the reality is you can lose it all. It is ok to start small, You also don’t need multiple brokerage accounts for a successful trading experience. You need to keep in mind if you do decide to start small then your gains will also be small. But the important thing is to keep an open mind and be realistic.
Summary: Day Trading Spy Options
As you can see, you don’t need to trade several stocks to be successful. Why spend your time on so many different stocks when you can easily focus on SPY options that happen to be the most liquid in the stock market? I can teach you how to day trade like the top 10% without a complicated strategy or any technical indicators, even if you are a beginner. My goal has always been to teach as many day traders to achieve their personal financial goals, whether they are novice traders or experienced traders. The MK VIP training has plenty of resources to help you get started on reaching your day trading goals.
I teach the working class how to earn $10,000 a month through day trading. I help my students avoid the challenges I faced when I first became a day trader. As of now, MK Financial LLC is already the #1-day trading coaching business in the US in just one year. You are just a click away from learning what you need to become a day trader trading SPY options. You can start with any amount of capital and take your life and salary to the next level.
Maurice Kenny has helped over 600 people become financially free through one-on-one coaching, mentorship, and options trading strategy. Many of these new traders are now full-time traders, and they all started by watching his 1-hr webinar.
Feel free to check out other FREE educational resources to help guide you as you begin your new journey to financial freedom.
Also, download a (FREE E-BOOK) by Maurice Kenny, “DAY TRADE LIKE A MILLIONAIRE.”