Learn before you burn yourself out. Most (and i really mean most) people lose money day trading. You need a discipline that is hard to master. You need to know how and when to take a loss as this is what saves you to trade again in search of the winners. Stop loss orders are very important. And you need to realize that you are trading against professionals who get better executions of orders, have better information and faster access to it. You are also trading against computer programs.
Options are for the most part a highly speculative venture unless you are writing covered calls to try and boost your return on your long positions.
read the educational stuff at bobbrinker.com
The wash sale rules apply to options trading if and only if the replacement position is "substantially identical" to the position closed for a loss.
<<<I traded stock options many times often within 30 days, each time taking a bigger loss; Say I BUYcall options for TM(toyota) sell within 30 days, rebuy within 30 days (different strike price different expiration date), each time taking a loss.. Can i take a capital gain loss or does the Wash Sale rule apply?>>>
You have to determine if the option purchased is "substantially identical" to the one sold. As of the last time I researched the issue, some years ago, the IRS had not issued any rulings to help clarify that term.
<<< I read somewhere the wash sale rule would apply for the 1st trade BUT that this DISALLOWED LOSS could be applied towards my COST BASIS of my next stock or stock option purchase of identical stock ?? >>>
When a wash sale occurs the loss is used to adjust the cost basis of the replacement position.
<<<Can i claim a capital claim loss on the 2nd or 3rd time i traded that particular stock option and took a loss or can i only use it to any future capital gain in future years??>>>
Every time you have a wash sale you adjust the cost basis of the replacement securities. You end up getting the benefit of the loss(es) as soon as you are out of "substantially identical" securities for a 31 day period. That can be in the same year or in a future year.
For more information on wash sales see the articles at
http://www.fairmark.com/capgain/wash/index.htm
including the pages on "Wash Sales and Options"
http://www.fairmark.com/capgain/wash/wsoption.htm
and "Substantially Identical Securities"
http://www.fairmark.com/capgain/wash/wsident.htm