Quant Option trading Idea for the last 90 minutes of the market!

2023年4月26日

Quant Option Trading Idea for the last 90 minutes of the market!

Please read this before any action!
Instructions:
1- Opening new position based on the forecast model between 9:35-11 and 14:30-15:55 (New York).
2- Choose Strike prices based on your risk tolerance, the first in the money (lower risk) or first out of the money (higher risk).
3- Position size: 1-3% of your options trading capital, and based on the power of the signal(higher power~ bigger position).
4- Primary Stop loss: 25% of your entry.
5- Target: +100%
6- Trailing stop loss: move your stop up after 30%-60%-90% …etc. gain, or roll to the next out-of-money contract.

Risks of Deviation from the Forecast Model:
Certain situations may increase the risk of deviation from the forecast model, the most important ones are:
- Earnings
- Important news like FOMC, Interest rate, CPI,Job data, FED's Chair Speech..etc.
- Holding overnight, and over weekends.