Short-Term Option Trading Can Serve As a Valuable Day Trading Tool

Options Trading As a Day Trading Tool Many individuals interested in the stock market consider options and warrants as a long-term investment (position in swing trading). However, both warrants and options can easily be used as a short term day trading tool. Many day traders have proven to be highly successful in taking full advantage of the options and warrants market. Options as a Day Trading Tool: Short or Long All of the non-options markets, including individual stocks and futures, allow for one way to enter into a long trade and another to enter into a short trade. However, with options, the market provides two specific ways to enter a short trade, and another two for a long trade. An investor can enter an underlying, long trade as a put (selling) or a call (buying). The investor can use the same call or put to make a short-term trade. Options: Call or Put Whether the investor uses a call or a put option, will rely on whether he or she is making a longer short trade. Most traders
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