Trading ES v.s. Options

luckystar2006

Been busy these few months without free time to share some of my personal opinions about trading stuff recently on HT.  

Anyway, I've been doing day trading ES for last few weeks v.s. Options for last few years where I draw up with a conclusion that it's much easier to do day trading ES than day trading Options.  That said, I only trade options when my swing setups get triggered.   On average, I make 2 to 5 options trades per week v.s. around 5 ES trades per day.

P.S. This thread is intended to those who are trying to explore which product is suitable to trade.  Good luck to all.

风行过

nice to see you! good work.

shibainu

georgeyn

7 is the lucky number

Hutong9999

Elephant

但是，rrsp，tfsa都做不了es，可以做spy options。

superxy

这种range day， 做options太难了。。。

novice_trader

  welcome to the ES club！

xinxing

Great! Would you mind sharing which broker you are using  and what are commission rates? Which type of account, is it ok trading with IRA?

luckystar2006

superxy 发表于 2017-3-21 02:52 AM
这种range day， 做options太难了。。。

That is just part of it.  Another main part of it is about commission fees.  You have to make >5 ticks (each tick is about .25 movement from ES) in order to begin to generate profits for an option trade.  For ES, you already made several hundred bucks for each tick movement with 7 contracts while commission fees are very low.  Below screen shot shows how I took advantages of low commission to make many ES trades with volatile market from yesterday.

luckystar2006

Here is the screenshot of net profit (excluding commissions) from above screenshot of 5 ES trades

Elephant

我记得有一次你说是用tfsa做交易，不用交税的。不会新闻报道被cra要求补税的就是您吧？

luckystar2006

Elephant 发表于 2017-3-22 09:27 AM
我记得有一次你说是用tfsa做交易，不用交税的。不会新闻报道被cra要求补税的就是您吧？

Yes, you can trade options under TFSA, but once CRA realizes that you are trading for living or abusing TFSA by doing active trading, instead of passive investment, they will come hard after you.  Not only they revoke your TFSA entitlement account, but also you will lose capital gains entitlement for all of your trading accounts because they have enough evidence to proof that you are TRADING, not INVESTING.

At this moment, the only option left is to bring CRA to court with a hope that I will win.  Otherwise, I might give up canadian citizenship and move to another country with lesser tax on capital gains.  New Zealand country is my #1 choice for now.

Rosie22

风行过

luckystar2006 发表于 2017-3-22 12:10 PM
Yes, you can trade options under TFSA, but once CRA realizes that you are trading for living or ab ...

I think your system is best fit to U.S. market. if you go to New Zealand, the time zone difference will drive you crazy, if you still want trade U.S. market. Trust me.

Come to U.S., Trump needs you as a 15% flat tax paying legal immigrate. And do not worry about those illegal immigrants and MSL, by the time you are here, they will all be in Canada!