End of Day Options Strategy
Many new traders are brainwashed into thinking into thinking of options as a quick fix of their financial problems and by the time they open an account they already look for a private island to buy with all the money yet to be earned. Many think that the faster you invest and turnover your deposit the better results you will get. Not necessarily. As with intra-day trading you are constantly trying to disassemble a mess of market signals. Just open up a 15 minute chart and compare it to the daily chart. You will see much less noise in the last one and it is easier to create end of day options strategy.
What is end of day options strategy?
One other important benefit of trading end of day options is that you can keep your current job and not sit the whole day before a price chart. This is very important for your financial stability as not everyone who starts trading has the stamina and dedication to become a full time professional in options. But there is a plethora of marketing techniques to make you obsessed with trades ranging from just a few seconds. But finances prefer calmness, clarity and reasonable time restrictions, for this reason end of day trades is my preferred choice.
The best way to place end of day options is at the end of New York exchange trading day when you can see the direction the market is going. If there is a clear trend, feel free to hop in with expiration being the next morning. The direction of the market is unlikely to change and because of the reasonable time-frame, volatility is of not such great importance.
A few things you must do to be successful there before placing a trade, to determine a trend and to develop your end of day options strategy: make a quick and effective scan through all major assets you trade to identify clearcut trading opportunities; adjust the time-frame for the end of your trade just before the New York market opens and place a trade with the usual amount, which should not be more than 5% of your account balance. And you are good to go and earn steadily with your end of day options strategy!