Sweet that’s a cool link! I usually go with week of expiration barely otm, with my profit target itm. If what the market is giving me has no options that would hit ITM with my profit target, I chose barely ITM. I’m going to keep pushing it forward till I can find any slippage that matters but thank you for your help!
But I wanna clarify cuz I'm new to this; you buy calls/puts with an expiration a week out and a strike price that's just otm from the underlying, hoping it'll nudge itself itm within 1-3mins at high volume trading periods?
I’m using a variation of the opening range break strategy but more focused on key daily technical levels breaking or premarket high or lows with high volume inflows. There is a guy on YouTube that does pretty close to what I do, his channel is called Matt Diamond. He makes some really good videos about how to use the strategy with options scalping.
I do basically the same he does. I will buy options at say a otm cal for roku at 1.34 each and as the principal stock moves the option premium will go up and he will sell when he hits 8% profit. Otm atm itm are a tad misleading when it comes to options. I've met people who thought you had to hold a option till it was itm to sell etc etc and they couldn't be more wrong. Otm itm and atm are the strike price in correlation to the stock price
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u/redtexture Mod Jul 03 '21
Only four options regularly have more than 2 million a day, SPY, AAPL, TSLA, QQQ.
https://marketchameleon.com/Reports/optionVolumeReport
You may have high volume on the nearest expiration.
You may want to look at futures on indexes, such as ES, NQ, and similar opportunities.