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Day Trading One Month Out Options. Learning To Skim The Tiniest Of Moves

This blog is different. It's about skimming small profits on one type of option in particular. It's also my story about how to make the time value of "one-month-out" options your very best friend. What I am about to try to describe to you is a phenomenon of wrongly calculated time values built into option pricings. Wrongly calculated from the perspective that some option prices (their "bids and asks") are over-sensitive to the tiniest of pricing swings. Who am I to make claims like this? What credentials do I bring to the table? I don't want to tell you as I want to keep my identity a secret. Let's just say that I have being trading options for a long time. Over the years I have learned that "nine month" or "one year out" Call options or Put options on stock's in the ten dollar price range are often mispriced. As example, I have followed the stock "Ford" for like forty years and to me it's January Call options a...
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The QQQ's Again

Back on July 26th I wrote a blog on trading the QQQ's. There is nothing magical about trading them, you just type in QQQ and follow the promps like any other stock. It's options on a basket of stocks. Stocks like Apple and the like. Pick whatever the day you want your series to expire. I like buying a few days time. Sometimes the markets lose their strength around noon on Fridays. It happened today. Here is it's five day chart and you can see the market selling off on Friday afternoon.
So here is the trade I made today.
I was in this position for 2.50 hours. You can see I bought an Aug 8th series so that would have given me until Tuesday. I got in at 11:53 a.m. It was an easy chart to play on the downside. Now I want to point out how this is a trading vehicle many traders recognize. Look at the closing summary of this series of Puts. There is something about it which stands out.
Notice the open interest of 1,771 and the trading volume on the day of 31,765. These are hot potatoes and taking a profit on a Friday afternoon is always a logical thing to do.

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