FB Gap Fill | Live Options Day Trading

Day trading options live on FB for the gap fill play. This video uses a one lot (one call option contract) to illustrate the power of a good strategy and eliminating guess work.

On this options day trade we were looking to take advantage of the ascending triangle chart pattern that would lead to a gap fill on Facebook. We had a known target and could generate known risk based on that target.

A key take away from this video is that not every trade is going to be perfect. When it comes to day trading, wether or not its stocks or options, you will hardly ever buy the bottom and sell the top. Instead, we just need to work with whats given to us and maximize profits using REALISTIC expectations and most importantly manage risk.

When trading options picking the right strike and expiration for the contract is key. On this trade we are using weekly options, and using the strike just at the money, but not an in the money call option. If you want to learn more about strike and expiration selection feel free to join the discord server linked above and discuss in the trading community.

We used options instead of day trading the stock outright on FB because our profit potential is much greater and capital allocation is much less. Imagine needing $27,500 to have the same exposure that we had using only $380 to make the same $100.