Day Traders, Swing Traders and Options? Perhaps!

January 25, 2008

Protective Puts Could Prove Gainful When Buying On Break-Outs and Bottom Fishing  - By Ron Ianieri

Day and swing traders typically look for stocks with short-term movements. They are not in the business of holding positions overnight let alone a week or two. Options are, therefore, not a popular component of their trading strategies. With new opportunities for profit now available, many firms are allowing their traders to trade options. They soon find that option strategies do not apply to the in and out nature of day trading. Since these traders often look for break-out and go bottom fishing for profitable opportunities, premium paying options can be gainful. Read more

U.S. Government Required Disclaimer - Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the options markets. Don't trade with money you can't afford to lose. This website is neither a solicitation nor an offer to Buy/Sell options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this website. The past performance of any trading system or methodology is not necessarily indicative of future results.

HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.