SARA asked in Business & FinanceInvesting · 1 decade ago

How to pick best call and put options for day trading?

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  • 1 decade ago
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    For the record, I believe day trading options is almost always a bad idea. Do not take my answer as a recommendation to day trade.

    There are several reasons that I think it is a bad idea, one of which is that for most options quotes must be in increments of $0.05 (if the premium is less than $3.00) or $0.10 (if the premium is greater than $3.00) which effectively creates a large vigorish. That particular problem can be mitigated by limiting your trading to the subset of options that trade in penny increments. Here is a list of stocks with options trading in penny increments:

    A - Agilent Technologies, Inc.

    AMD - Advanced Micro Devices, Inc.

    CAT - Caterpillar, Inc.

    FLEX - Flextronics International Ltd.

    GE - General Electric Co.

    INTC - Intel Corp.

    JAVA - Sun Microsystems, Inc.

    MSFT - Microsoft Corp.

    QQQQ - Nasdaq-100® Trust Shares

    SMH - Semiconductors HOLDRs

    TXN - Texas Instruments, Inc.

    WFMI - Whole Foods Market, Inc.

    WM - iShares Russell 2000® Index

    AAPL - Apple, Inc.

    AMGN - Amgen, Inc.

    AMZN - Amazon.com, Inc.

    BMY - Bristol-Myers Squibb Co.

    C - Citigroup, Inc.

    COP - ConocoPhillips

    CSCO - Cisco Systems

    DIA - Diamonds Trust

    DJX - Dow Jones Industrial Average index

    DNDN - Dendreon Corp.

    FCX - Freeport-McMoRan Copper & Gold, Inc.

    GM - General Motors

    MO - Altria Group, Inc.

    MOT - Motorola, Inc.

    NYX - NYSE Euronext

    OIH - Oil Services HLDRS

    QCOM - Qualcomm, Inc.

    RIMM - Research in Motion Ltd.

    SPY - SPDR S&P 500

    T - AT&T, Inc.

    XLE - Energy Select Sector SPDR

    XLF - Financial Select Sector SPDR

    YHOO - Yahoo!. Inc.

    XSP - Mini SPX index

    AA - Alcoa, Inc.

    AIG - American International Group, Inc.

    BAC - Bank of America Corporation BAC

    BSC - The Bear Stearns Companies, Inc.

    CFC - Countrywide Financial Corporation

    DELL - Dell, Inc.

    EBAY - eBay, Inc.

    EEM - iShares MSCI Emerging Mkts. Index Fund

    EMC - EMC Corporation

    F - Ford Motor Company

    GS - Goldman Sachs Group, Inc.

    HAL - Halliburton Company

    HD - The Home Depot, Inc.

    JPM - JPMorgan Chase & Co.

    LEH - Lehman Brothers Holdings Inc.

    MER - Merrill Lynch & Co., Inc.

    MNX - Mini-NDX Index Options

    NEM - Newmont Mining Corporation

    PFE - Pfizer, Inc.

    RIO - Vale

    SBUX - Starbucks Corporation

    SNDK - SanDisk Corporation

    TGT - Target Corporation

    VLO - Valero Energy Corporation

    VZ - Verizon Communications, Inc.

    WM - Washington Mutual, Inc.

    WMT - Walmart Stores, Inc.

    XOM - Exxon Mobil Corporation

    Within this subset of options, I would recommend you limit your trades to the more liquid options, usually those that are short term and near the money.

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  • 4 years ago

    You can make money in binary options only if you treat it as a real form of investing. Learn here https://tr.im/WCXdm

    This means learning how it works, learning how to read charts and learning how you can make accurate predictions. All these are not that difficult but it takes some time. If you treat it as gambling and just make random predictions then you will obviously not win.

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  • 4 years ago

    Learn the top advanced strategies for Penny Stock Trading to make massive amounts of money in today's market safely https://tr.im/Gfvog

    This website will take your Penny Stock Trading to the next level. You will learn the most modern and up to date strategies and techniques to make massive amounts of gains with the Penny Stock Market.

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  • Anonymous
    1 decade ago

    Look for options of underlying stocks with high volatility. These will have higher premium.

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