Hello,

Anyone use VWAP SD bands to day trade options? If yes, please help me with the strategy.

This is what I have been thinking...

If the underlying stock price (AAPL or SPY or any fav stock) pierce thru 2nd SD band (Lower or Higher) then wait for some time to see if it touches the 2nd/3rd SD band and take opposite trade for scalping. Stop loss at 20-30%.

With the way HFT is going on this should be a decent strategy what do you think?

Disclosure - I did tried few but I am unable to book profits or close out quickly mainly due to my mentality which I need to control.

NexusFi (formerly BMT)rader

What time frame charts are you using?

meyer99 

What time frame charts are you using?

I am looking at Intraday 3 mins time frame.

I live in the Chicago land area and know some floor traders. They tell me some floor traders with use the daily VWAP on a 5 minute chart of a given equity and will usually make a play when the equity touches the 2 standard deviation.

For what it is worth.