Is it normal that traders buy and sell options of the same stock on the same day multiple times? For example, in an event of a positive earnings release, the CALL options were bought and then sold it after an increase in a few hours. A negative news came out, bought another PUT option contract and sold it in the next hours?
- Are there any regulations from the SEC for such type of option trading?
- Is there any special license from SEC or online brokers like TDAmeritrade needed to trade options on a day to day basis?