26*. Day Trading an Index with Options
If you are ready to try your hand at using options to day trade an index or ETF representing an index, here is an overview of how to start. Some ideas will be included on what index to use and the basic tools you need to pursue this endeavor.
Esssentially all the major indexes and ETFs representing an index now have weekly options. For day trading purposes, you want to use weekly options because they are cheaper, but you also want these options to be highly liquid to facilitate entry into and exit from trades. You want an index or ETF with a range of daily price movement that is sufficient to create opportunities for profit. A favorite of many traders that meets these criteria is the SPY, an ETF that corresponds ...
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