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Hi All,
Wanted to get some input on daytrading SPY options and picking an appropriate strike price.
Generally, option liquidity is better with SPY but depending on the strike (Deep ITM, ITM or ATM, OTM) the volume and volatility vary. Anyone has any criteria how they pick which option to daytrade?
Thanks in advance for any suggestions!
AP
Can you help answer these questions from other members on NexusFi?
Before I switched to s&p futures I day straded spy options. Now the amount of time to expiration and capital plays a role.but if I was trading the weeklies or same month it always be at least 2 strike prices in the money. And if I was trading longer expirations at the money was preference my reasoning was I wanted the option reacting to as much of the spy price movement as possible
Legendary and occasionally successful index futures day trader
Experience: Intermediate
Platform: Tradovate / Webull
Broker: Tradovate
Trading: Futures / 0dte SPY
Frequency: Many times daily
Duration: Minutes
Posts: 518 since May 2023
Thanks Given: 213
Thanks Received: 365
I started on the SPY 0dte options, but usually stick to SPX 0dte now. I like the short time frame trades / scalps, usually from a trend reversal (short or mid term trend).
I think finding your strategy and setup first is key. Are you scalping off reversals? Swings to follow a trend? Longer term macro moves? Each style will go with a specific strike price and different set of days from expiry.
For my setup (reversal scalps) its 0dte, and 1-3 OTM on SPX
