I've seen several traders claiming to make thousands of dollars daily from options trading. But even highly traded options like SPY, QQQ, TSLA, NVDA have low volumes. For instance, average total traded value of each leg of SPY is around 200K.
Assuming a trader makes 50% or $50K in a day, they'd have to be working with a $100K capital, right? One trader said he trades with a capital of 150K on just SPY. How's that possible with options given lack of liquidity? Even trading multiple legs may not work.
