When the market exhibits unpredictability and volatility, or when you're seeking a low-risk approach, scalping options could be a suitable strategy. I will briefly discuss my approach, which simply involves applying the same process (cycles + gamma levels) to the 1-minute time frame. Although, ideally I want to be aligned with the 5-minute cycle when doing so.
Previously I executed a series of trades starting from the double low in the early morning. I purchased options during the 1-minute cycle low and sold them when the 1-minute cycle high was reached.
I traded these on the SPY because it offers a lower level of risk, albeit with lower potential rewards as well, at least on an absolute basis.
I generally select options that are 1-3 strikes OTM (depending on volatility). I usually don't use a strict stop loss, but if a key structure or horizontal level is broken, I might decide to exit the trade. This exit point is usually very close to my entry point, resulting in minimal potential losses.
When I observe confirmation signals on higher time frames, I might extend my patience and await a stronger price move before making a decision to exit. Additionally, I tend to limit this strategy to the first half of the trading day because the impact of theta decay is less significant during this period. However, if there is sufficient volatility in the second half of the day, it could present attractive opportunities.
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