How Much Money do you Need to Make $100 Per Day Option Trading?
You can make $100 per day option trading if you enter a trade with $333.33, and go for a 30% profit return.
The truth to this answer is, it really depends how much you want to risk, and the percent target you’re trying to aim for.
I remember starting to option trade, and shooting for $100 per day as my first goal. So I remember, googling around, and I’d get a lot of similar answers such as:
I’d say at least $1,000 if you’re able to manage your trades properly. But you’d have to be near perfect with your win rate. More likely you’ll need $5,000+
Answer in Quora
This couldn’t be any further from the truth. You can enter a trade with $100, and profit a trade with 100% trading weeklies.
You can enter a trade with $10,000, and go for a 1% profit trade, and you’ll get your $100–for safer trades with bigger money, you may want to look at monthly option contracts.
Use the quick links to jump straight to learn more about making $100 per day with option trading:
- How Much Money do you Make Making $100 Per Day Option Trading?
- What Strategy Should you use to Make $100 Per Day?
- Can you Make $100 Per Day with Swing Trades?
- What if you Make More than $100 Per Day?
How Much Money do you Make Making $100 Per Day Option Trading?
You can make a pretty good substantial amount of money trading options, but you don’t need to make a whole lot to make an extra income.
There are 252 trading days within the year, and if you try to make $100 every trading day, you can make up to $25,200 for the year.
The U.S. median income is $31,133. With that said, you’re practically making another salary.
What Strategy Should you use to Make $100 Per Day?
There’s a lot of answers in Google on how much to risk, but not a lot of answers on how to make $100.
What’s the best strategy? Should you do swing trades, day trades, or scalp trades?
My recommendations on how to make $100 per day with option trading:
- Become a scalp/day trader
- Trade off Supply and Demand zones
- Trade $SPY and $QQQ stocks
- Learn More Chart Reversal Patterns
1. Become a Scalp/Day Trader
The idea between these two styles of day trading, is that it allows you to close your position in the same day.
You’ll need to analyze all timeframes from the monthly time interval down to the 15 minute–but your primary focus should be the 4 hour and below.
The 4 hour timeframe and below are primarily used for intraday trading–intraday trading are for traders who are scalp and day traders.
Article to help you with timeframes: Timeframes for Option Traders 101: How to Analyze Different Timeframes With Examples (alfatoro.com)
2. Trade off Supply and Demand zones
Supply and Demand zones are some of the easiest, and most fundamentals strategies you can use as an intraday trader.
Find where institutional traders are buying and selling big amounts of shares. Play to their side, not against it.
Article to help you find Supply and Demand: How To Find Supply And Demand Zones: Easy Beginner’s Guide (alfatoro.com)
3. Trade $SPY and $QQQ
As an intraday trader, you need liquidity in the stock that you’re trading–liquidity just means volumes of people buying and selling.
$SPY and $QQQ are a couple stocks that have high amounts of liquidity on consistent and daily basis–unless it’s a short day, or holiday week.
$SPY and $QQQ also respect Supply and Demand levels, which is complimentary to the trading strategy.
4. Learn More Chart Reversal Patterns
As an intraday trader, it’s a bit more difficult because of the risk that it comes with. To avoid being stopped out of a trade or entering early without confirmation of trade, you need to also learn some chart patterns.
Articles to help you learn chart patterns:
- List of Chart Patterns (alfatoro.com)
- The Best 12 Reversal Patterns For Option Trading in 2022 (alfatoro.com)
Can you Make $100 Per Day with Swing Trades?
You can certainly make $100 per day with a swing trade. You’re just going to want to be careful during a bear market, and you’ll want to pick monthly option contracts to avoid wild stories that may come out or to minimize theta decay.
What if you Make More than $100 Per Day?
If you make more than $100 in one of your trading days, take the next trading day off. There’s no need to overtrade or even stress out about trading the next day.
Part of trading is gain financial freedom. But if you feel forced to be in front of the screen, where’s the freedom to that?
