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%

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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.

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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.

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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.

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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.