Sapperstien 74 Posted February 10, 2020 Part of my studies leads me to many other sources for information on the markets. On YT I found a day trader that talks about novice VS professional gaps. Premise here being most gaps are pro until you see them being proven as novice or gaps that dumb money would make. The ending day on a parabolic run up like on TSLA the last day it ran to 980. Lets say 5 min before the daily candle closes and prints you see that this will close the day as a insane novice gap and you want to short it for the next day. I'm sure option premiums would be high at that point as they were with TSLA period but wouldn't it being pretty easy to buy puts and sell at open? Or would the premium or some other factor im not thinking about dis allow this strategy from working? I haven't looked into the idea that much. Just got to thinking after TSLA did its thing without me. Share this post Link to post Share on other sites
ecadaret 14 Posted May 2, 2020 From your reply, I recommend you pick up a copy of Option Volatility & Pricing by Sheldon Natenberg. Understanding the mechanics of options is important before you trade them. Share this post Link to post Share on other sites
