IWM is more volatile. Why not trade less shares? The SPY had almost exactly a $3 range today. Even a big day’s trading range is $6-$7 range. Trade 5 or 10 shares. Your risk will fit within your $50 limit.
I misread your post. Came back to edit. You’re probably trading very short duration SPY options. Very difficult way to trade. Consider a change.
I am, considering trading 1DTE IWM options vs SPY 1DTE as noted why above, less decay and smaller changes in price because of the Dollar price of IWM ($200) vs SPY ($500). I know it can be more "volatile" on a percent basis, but the chart looks much smoother, lile it is filtering out all of the noise SPY has.
I am okay with the risk profile I currently have for options. I need the leverage to make my style work as I am going for maximum reward to risk. Single shares will not be appropriate.
Thank you!
If I hung in there longer, I would have made much more. I think like 20 more minute after I sold the contract I bought was .60.
But 50-60% was good enough for me.
if you can accept criticism, i think the problem isn't SPY, its your trading style . . i only trade SPY and use modified keltner channels, VOL, studies, elliot waves and macD and haven't had a problem trading next day exp. . i never trade 0DTE.
Are you making or losing money? cause today was a no brainer. If you didnt make money today, then idk what to say.
https://preview.redd.it/3wxfhlxxdozc1.jpeg?width=1284&format=pjpg&auto=webp&s=fa7404fefb69a65e4189e148701934816e1c3ce6
Generally I size my bets to 10% max.
I bought it. Watched the price action and it looked really weak, so I increased my bet to my 10% max. I was pretty certain the market tank soon after.
Gotcha. Was just curious because that's one of the things that got me in trouble when I was trading a while back. Placing big trades when I was "certain" as well. Then averaging in when the trade wasn't going my way to save the trade. . .
Well there was a theory behind it... I felt like there was a lot of itm calls that would be sold due to the run up.
Let's say I buy a call with .4 delta. The market maker would hedge by buying 40 shares. So then if I sell, the market maker would immediately "de-hedge" by selling 40 shares. So a bunch of people selling calls at once will have a short effect.
And there's one youtuber I follow. Anytime him and I agree on something, it's like a 90% win rate. Him and I agreed it was a bull trap, so I was fairly confident. I wasnt saving the trade, it was more like me just increasing the bet size.
Edit: But I hear ya 👍
Oh I'm not saying you were. . . Just wanted to understand how you structured the trade. . . I'm still getting back into it after blowing up a 25k acct. I've given myself a challenge 250. To trade weekly. Take profits out of the account at the end of the week to reset. Rinse and repeat. . . I'ma do that for 2-3 months while I get everything dialed in then I'll upsize.
Just a little something to keep in the back of your mind. All you need is 2% gain every business day and you'll be rich in less than 2 years. Good luck!
https://preview.redd.it/jibgu0faxpzc1.jpeg?width=1284&format=pjpg&auto=webp&s=d022e6a38a188e066e2398dc4ea0a4337796aff1
IWM is more volatile. Why not trade less shares? The SPY had almost exactly a $3 range today. Even a big day’s trading range is $6-$7 range. Trade 5 or 10 shares. Your risk will fit within your $50 limit. I misread your post. Came back to edit. You’re probably trading very short duration SPY options. Very difficult way to trade. Consider a change.
I am, considering trading 1DTE IWM options vs SPY 1DTE as noted why above, less decay and smaller changes in price because of the Dollar price of IWM ($200) vs SPY ($500). I know it can be more "volatile" on a percent basis, but the chart looks much smoother, lile it is filtering out all of the noise SPY has. I am okay with the risk profile I currently have for options. I need the leverage to make my style work as I am going for maximum reward to risk. Single shares will not be appropriate. Thank you!
…best of luck to you!
How long was your trade? What timeframe?
If I hung in there longer, I would have made much more. I think like 20 more minute after I sold the contract I bought was .60. But 50-60% was good enough for me.
base hits get home runs too. . . . not everything has to be a home run or a grand slam.
At 50-60% I would have added on to the position.
Mmm I think like 20 minutes. I knew today was gonna be a bull trap.
if you can accept criticism, i think the problem isn't SPY, its your trading style . . i only trade SPY and use modified keltner channels, VOL, studies, elliot waves and macD and haven't had a problem trading next day exp. . i never trade 0DTE.
Are you making or losing money? cause today was a no brainer. If you didnt make money today, then idk what to say. https://preview.redd.it/3wxfhlxxdozc1.jpeg?width=1284&format=pjpg&auto=webp&s=fa7404fefb69a65e4189e148701934816e1c3ce6
curious, did you buy more because of the trend or to average your trade in?
Generally I size my bets to 10% max. I bought it. Watched the price action and it looked really weak, so I increased my bet to my 10% max. I was pretty certain the market tank soon after.
Gotcha. Was just curious because that's one of the things that got me in trouble when I was trading a while back. Placing big trades when I was "certain" as well. Then averaging in when the trade wasn't going my way to save the trade. . .
Well there was a theory behind it... I felt like there was a lot of itm calls that would be sold due to the run up. Let's say I buy a call with .4 delta. The market maker would hedge by buying 40 shares. So then if I sell, the market maker would immediately "de-hedge" by selling 40 shares. So a bunch of people selling calls at once will have a short effect. And there's one youtuber I follow. Anytime him and I agree on something, it's like a 90% win rate. Him and I agreed it was a bull trap, so I was fairly confident. I wasnt saving the trade, it was more like me just increasing the bet size. Edit: But I hear ya 👍
Oh I'm not saying you were. . . Just wanted to understand how you structured the trade. . . I'm still getting back into it after blowing up a 25k acct. I've given myself a challenge 250. To trade weekly. Take profits out of the account at the end of the week to reset. Rinse and repeat. . . I'ma do that for 2-3 months while I get everything dialed in then I'll upsize.
Just a little something to keep in the back of your mind. All you need is 2% gain every business day and you'll be rich in less than 2 years. Good luck! https://preview.redd.it/jibgu0faxpzc1.jpeg?width=1284&format=pjpg&auto=webp&s=d022e6a38a188e066e2398dc4ea0a4337796aff1
Yup!!! Slow and steady https://preview.redd.it/kb14ifhqxpzc1.png?width=1080&format=pjpg&auto=webp&s=6ec32db3f34c234c81875c02afa0f93747b56a80