Galal Debit Spread Scalper
Debit Spread on a Momentum Stock that is expected to run in the next few hours for 20-30% profit
Debit Spread is purchased for 30%-40% of the strike width with long call few cents OTM or ATM, or few cents in the money.
The scanner is designed to look for momentum in a stock that was screened already for momentum on 5 minute chart and holding gains or grinding higher. It will check for opportunity return of 25% and reasonable bid/ask spread in order to enter the spread with Long ATM call and nearest Short Call and nearest DTE. The scanner will evaluate the $1/$2.5/$5 wide strikes.
You would have to screen these stocks and adjust the scanner tickers possibly daily to look for runners after 10:15AM and avoid opening range breakout/fake-out.
The Spread Manager is designed with profit target, trailing stop, and stop losses that are all adjustable. The Manager will also check if position has been open for more than a day or has less than a day left to expiration to exit the position and close it if not achieving profit in hours or next day max. Remember, this is a debit spread with nearest DTE. As in, it's like a melting ice cube on a highway asphalt in an Arizona summer, but better than just a long call.
This is still work in progress and may indicator adjustment as well as delta adjustments. The whole trade is designed to last few hours or maximum and overnight trade.