The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online

Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we are going to be talking about swing trading for options traders. Oftentimes, I will get emails from people around the topic of swing trading or using day trading type techniques in options trading and the thought process is always, “Well, Kirk, we can’t really use options trading because we’re trying to swing trade the stock or we’re trying to day trade the stock.” But I actually think that this marriage of swing trading or position trading around the market in options trading actually works really well and I’ll explain why. Whenever you do a regular swing type trade or let's call it a day type trade where you’re trying to actually trade the underlying position, so you’re swing trading Apple or day trading Apple, you are trading the actual physical stock of Apple. The problem with that is that you have to be right immediately in your directional assumption. If you buy Apple stock for say $500 a share, then if