Overnight Lotto - short term Equity Options trading

Discussion in 'Journals' started by Ninja Mobile Trader VPS, May 3, 2021.

  1. I call them overnight lottery tickets because they are bought a close, and sold at open the next day. For anyone with less than 25k in their fun account, trading overnight is a workaround to the pattern day trader rules.

    For picks, I filter the stock universe down to the tickers trending on social media today. There are many tools and websites for this, and a free helpful site is https://marketstream.io/latest

    Then look at the daily and 5 min chart to predict if the stock will gap up overnight.

    5/3/21 Tonight's tickets are:
    • OCGN 15c 5/21
    • NOK 5c 5/7
    upload_2021-5-3_14-46-7.png

    upload_2021-5-3_14-46-44.png
     
    Last edited: May 3, 2021
    R1234 likes this.
  2. ffs1001

    ffs1001

    And therein lies the key......

    If one could accurately predict the overnight gaps with consistency, then they would have the holy grail itself.
     
  3. Overnight

    Overnight

    So...Did they work?
     
  4. OCGN “12.51 USD−3.17 (20.22%)” and NOK are being cursed at on WS Bets under “Loss Porn” headlines. If you bought puts it worked.
     
  5. IMO ....... Best to buy the weeklies for maximum bang-for-your-buck when trading these 1-day option trades.

    And don't forget about the SPY Monday & Wednesday options and the QQQ's Wednesday options.
     

  6. I don't know of there's ever a good day to start gambling, but it certainly wasn't Monday afternoon. Both sold at open for 50% loss.

    I didn't have spare time yesterday to post an update, but I do plan on continuing posting updates everyday, as I have traded this strategy for years personally.

    Yesterday's new picks were ATM 5/7s on CLF and X. Will update with performance soon.
     
    Last edited: May 5, 2021
    easymon1 likes this.

  7. Everything is a probability and profitability is measured over a longer time frame. The key is proper bet sizing so as to not blow up over a series of losing bets.

    i don't follow these by the letter, but theories like Risk of Ruin are helpful.

    From that point of view, it is not too different from intraday futures trading. The per trade maximum loss is defined.
     
  8. easymon1

    easymon1

    Thanks
     
  9. easymon1

    easymon1

    Is this project ongoing?
     
    TrailerParkTed likes this.
  10. dsch11

    dsch11

    Nice journal, heh.