What delta works the best for trading intra day options

January 13th, 2013, 11:10 PM

Hi all:

I am starting to paper trade options as an intra day trader. I have been trading options for some time now, and am pretty comfortable with it, but I am new to day trading. Most people seem to always trade the front month, as I am doing, but I would like to know what delta works the best for trading intra day, and why?

January 19th, 2013, 10:18 AM

What exactly are you trying to accomplish? Do you simply want to use options as a proxy for the underlying or is your plan more complicated?

January 21st, 2013, 06:25 PM

Hey man. Welcome to the forum. It depends on your capital and risk levels. Personally I trade options with a +0.80 delta for intraday plays (preferably 0.85). During opex and with weeklies in general, everything in the money is around those price levels.

Regular Ditm front month options will be expensive but it allows you to participate in the move as soon as it happens. Small-medium sized moves intraday won't affect most otm options and will be reflected slightly on ATM options but DITM options move in unison with the market

February 1st, 2013, 11:46 PM

i use a delta of .7 myself

February 3rd, 2013, 11:18 AM

0.7 delta to day trade... Do you not have enough capital to buy a higher delta or do you trade options on +$100 stock?

What delta works the best for trading intra day options

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What delta works the best for trading intra day options