Is day trading options a good option income trading strategy?

As a result, day trading options can become one of your core option income trading strategies. Before you start, make sure you know how to read an option chain and consider selling put options for income instead of day trading options.

What is day trading?

Day trading, on the other hand, is a style of trading in which positions are opened and closed during the same trading session. A day trader's profit or loss depends on a number of factors, including entry price, exit price, and the number of shares, contracts or lots that the trader bought and sold.

What is a pattern day trader?

When you day trade, whether in equities or options, you buy and sell so quickly that previous transactions don’t have time to officially clear. According to FINRA, this makes the strategy against the rule, and you are, per definition, a pattern day trader. So if you place one day trade a week, everything is okay.

What is options trading?

Options trading is the trading of instruments that give you the right to buy or sell a specific security on a specific date at a specific price. An option is a contract that's linked to an underlying asset, e.g., a stock or another security.