Chapter 26. Day Trading an Index with Options[*]

[*] Chapters with more advanced content are marked with an asterisk and can be passed over by beginners during the first reading of this book.

If you are ready to try your hand at day trading an index using options, here is an overview of how to get started. Some ideas will be included on what index to use as well as the basic tools you will need to pursue this endeavor.

A large number of indexes have options. For day trading purposes, you want an index with highly liquid options, and you want an index with a range of daily price movement that is sufficient to create opportunities for profit. A favorite index of many traders that meets these criteria is the S&P 100, better known as the OEX.

The ...

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