Why is this one Options daytrade better than the other?

Witstock

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I'm full of stupid. Be forewarned...

Question: why the heck is one of these stocks (actually a few) outperforming others when it comes to daytrading them? Let's assume you were mostly trading precisely at ever major peak (selling calls/buying puts) and valley (selling puts/buying calls.)

For example:
  1. MRNA or COP options: Volume and IV's are mostly the same. They're both trading pretty well. Nice peaks and valleys, not too much whiplash. Trading about $2,500 in both calls and puts, not so concerned about expirations preferably deeper ITM. I trade these, I simply have better returns.

  2. XOM options: Mostly lines up with the stats above. The only difference I can readily see is that perhaps the ADR (daily price range) tends to swing less (generally more consolidated) perhaps? I make a fraction of what I can on the two listed above, but I'm employing the same exact methods.
When it comes to daytrading these, I find it's not the premiums since the expirations don't really matter as much (different topic really - they do and they don't) but periods of consolidation/whiplash which tends to eat profits. Aside from that, I haven't been able to put my finger on whether for XOM (and other underperformers) if it's popularity, bid/ask spread, or overall ADR which kills my profits on some stocks while I do great on others.

Just wondering if anyone on here knows the answer to this thing which has been keeping me up at night. I'm leaning towards ADR more than anything else so far.
 
Solution
I'm full of stupid. Be forewarned...

Question: why the heck is one of these stocks (actually a few) outperforming others when it comes to daytrading them? Let's assume you were mostly trading precisely at ever major peak (selling calls/buying puts) and valley (selling puts/buying calls.)

For example:
  1. MRNA or COP options: Volume and IV's are mostly the same. They're both trading pretty well. Nice peaks and valleys, not too much whiplash. Trading about $2,500 in both calls and puts, not so concerned about expirations preferably deeper ITM. I trade these, I simply have better returns.

  2. XOM options: Mostly lines up with the stats above. The only difference I can readily see is that perhaps the ADR...
I'm full of stupid. Be forewarned...

Question: why the heck is one of these stocks (actually a few) outperforming others when it comes to daytrading them? Let's assume you were mostly trading precisely at ever major peak (selling calls/buying puts) and valley (selling puts/buying calls.)

For example:
  1. MRNA or COP options: Volume and IV's are mostly the same. They're both trading pretty well. Nice peaks and valleys, not too much whiplash. Trading about $2,500 in both calls and puts, not so concerned about expirations preferably deeper ITM. I trade these, I simply have better returns.

  2. XOM options: Mostly lines up with the stats above. The only difference I can readily see is that perhaps the ADR (daily price range) tends to swing less (generally more consolidated) perhaps? I make a fraction of what I can on the two listed above, but I'm employing the same exact methods.
When it comes to daytrading these, I find it's not the premiums since the expirations don't really matter as much (different topic really - they do and they don't) but periods of consolidation/whiplash which tends to eat profits. Aside from that, I haven't been able to put my finger on whether for XOM (and other underperformers) if it's popularity, bid/ask spread, or overall ADR which kills my profits on some stocks while I do great on others.

Just wondering if anyone on here knows the answer to this thing which has been keeping me up at night. I'm leaning towards ADR more than anything else so far.
are you asking why the price of some options move more even thought the movement is similar, in terms of points and direction? if that's the case I would say popularity, maybe you're also paying for liquidity, and yeah implied volatility, which is implied ADR in some ways, maybe because some of them have the possibility of moving more, so you pay more for that, you pay for "insurance". I don't know if that's what you are asking.
 
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Solution
Thanks. I looked at the float for XOM, COP, and MRNA and the one that moves in price the least happens to have the highest float/outstanding shares so perhaps that's what's causing it. Basically, if I try to daytrade XOM (highest float) I barely make any money but it also seems like the ADR is the smallest range. Moderna can trade in $5 ranges easily and COP can trade within $2 as of recent charts.

I'm just wondering why some would be more difficult to profit from vs. others whose charts are similar in behavior don't see the same gains. I'm starting to wonder if it's mostly ADR and/or float that accounts for this difference in returns.
 
Thanks. I looked at the float for XOM, COP, and MRNA and the one that moves in price the least happens to have the highest float/outstanding shares so perhaps that's what's causing it. Basically, if I try to daytrade XOM (highest float) I barely make any money but it also seems like the ADR is the smallest range. Moderna can trade in $5 ranges easily and COP can trade within $2 as of recent charts.

I'm just wondering why some would be more difficult to profit from vs. others whose charts are similar in behavior don't see the same gains. I'm starting to wonder if it's mostly ADR and/or float that accounts for this difference in returns.
It is the chicken or the egg question, pretty much some options are going to be better to trade because they are better to trade, popularity and implied movement, how much something can move factors this, also some stock options are easier to get filled this also matters, because you don't want to lose buying and selling on the spread.
 
Thanks for taking the time to reply I really appreciate it. In a sense yes that is what I am asking. I was just wondering if there’s any statistic, value, or range in particular that could point me towards similar behaving stock options/stocks that makes it easier to daytrade/scalp in order to help identify “sweet spots.”

I believe more in math. Regular trading tends to be math + sentiment + news.
Daytrading could be somewhat disengaged from those if that’s all you’re doing is surfing waves.

I tried my methods on stocks like SPY and TSLA and I simply couldn’t daytrade/scalp them as things were changing so rapidly.
I also tried it on another oil company who had similar oscillating waves, volume, etc and while it worked, I actually lost money for the first time because sideways consolidation periods chipped away at profits. If I go back backtesting the ones I’m used to on random days (up or down), so far I’ve reliably ended up positive.

it’s funny because all of the options tutorial videos usually recommend the bid ask spread to be within a small difference whereas if I see a wider spread (assuming option volume and OI >0), the spread when scalpingni find to be profitable assuming that there’s some liquidity. I buy low and sell high. So I’m trying to find that larger bid ask options spread while still guaranteeing there’s trading.
 

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