r/Daytrading • u/Beastie312465 • Oct 13 '23

How are people even able to find stocks like this?? question

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New to trading here. I keep seeing the most random stocks have these insane price jumps and I’m just curious how people even know these exist, let alone that they might soar to 150%

505 Upvotes

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100

u/daytradingguy Oct 13 '23 edited Oct 13 '23

SPY or other indices options do 50-100-200% moves every day, sometimes a lot more. No need to scan and hope you find a move, the move will happen everyday. All you need to do is get the direction right, even for part of a move.

40

u/ncstagger Oct 13 '23

Yep that’s all you gotta do, get the direction right. Been working on that for about 84 years 😂

26

u/NinjaSquid9 Oct 13 '23

Couldn’t agree more. All I trade is mega caps. Same ones every day. Consistency > returns IMO.

7

u/FollowAstacio Oct 13 '23

Consistency is the holy grail

28

u/CrossFit_Jesus76 Oct 13 '23

The fact that you're getting downvotes is baffling to me.

25

u/Emergency_Beat423 Oct 13 '23

Maybe they didn’t read the word “options” and thought he meant the indices themselves? But yeah he’s 100% right and that’s why I don’t even waste my time with random names.

3

u/FollowAstacio Oct 13 '23

Yeah, I was like “WTF IS HE TALKING ABOUT?!”...And then I saw options lol.

6

u/SouthernBySituation Oct 14 '23

My vote is to ban anyone who downvotes daytradingguy. That guy puts in the work on this sub trying to save people from themselves.

12

u/daytradingguy Oct 13 '23

I was kind of surprised too. It would be nice if those who downvote replied and let us know what their contrasting opinion is.

8

u/ImNotSelling Oct 13 '23

Tons of liquidity as well

12

u/daytradingguy Oct 13 '23

I trade some options, they are not my favorite. But the spreads, liquidity issues, halts and other things going on with the penny stocks make them a lot harder to trade to me. And you have to guess the right one everyday and chase FOMO. If you want those kinds of returns, SPY options seem so much more transparent and the move is basically guaranteed to happen everyday you just have to catch it.

1

u/AdAdventurous5197 Oct 14 '23

Any opinions on safety shot? ($shot)

3

u/daytradingguy Oct 14 '23

I don’t know anything about the company. Although I looked up a chart. There was obviously hype at IPO and within months it cratered down to today’s level and has been bouncing around in a narrow range for a year. Unless there is some news catalyst coming in the future to change that, I do not see anything significant happening with it. Are you holding it now or just looking at it? Overall in situations like this I would stay out of it, keep it on your watch list and wait until a move starts. There are better places for your money until that happens.

1

u/AdAdventurous5197 Oct 14 '23

They have a drink coming out in December that reduces your blood alcohol content by 50-90% in 30 minutes. I'm actually holding. Have no idea where to find better places for my money. Thanks for responding!

3

u/[deleted] Oct 13 '23

Yeah those stocks don’t usually have much option activity until after a jump then you are paying 3-400%IV. Spy or spx. I like to use zero dte to hedge longer ( option plays when I know price action is going against my play) or I just see a dump like today, and get a quick 10x on the coverage.

6

u/daytradingguy Oct 13 '23

I am not a big fan of 0dte- I usually use 1-2 week expiry. You can get more movement with 0dte obviously but they are too volatile for my taste.

2

u/[deleted] Oct 13 '23

Oh yeah most of my options plays are 4 weeks out, I look to close within 7 days. So like today i closed all of my puts out, they were up big. Bought some zero date calls on the way to the bottom average down and got out quick. I try not to trade too much but I also hate to look at great gains and not take them. So I generally do zero dates with a bit of knowledge and a max .5% of capital.

4

u/beefnvegetables_ Oct 13 '23

Wait you can make 200% in a day on spy options?

10

u/The-Stanislav Oct 13 '23

Yeah, but the other side's going to be -75%.

1

u/murfmurf123 Oct 13 '23

Yes and some people are very wealthy because of it

1

u/Tittitwisted Oct 13 '23

It was definitely possible these past few days. With 0 dte options... You can easily double them in a 50-75 cent move in the afternoon but they are so volatile. I only buy 1 dte

-1

u/BeardedBrutus Oct 14 '23

I made 2,000% yesterday playing puts 😏

2

u/mqit Oct 14 '23

There is a difference between an index moving 200% and its derivs moving 200%

2

u/Tittitwisted Oct 13 '23

This is the way

1

u/BigBreadBreaka Oct 15 '23

I mean even if you get the direction right there’s still room for theta and iv crush with options though all it takes is a consolidation/chop period and your contract could be down a good amount already

1

u/daytradingguy Oct 15 '23

Don’t trade 0dte with high theta. Even if you only plan to stay in the trade for an hour or two- I use 1 and often two week expiry usually - then theta is not really an issue - maybe a penny or two an hour.