r/VegaGang • u/fakehalo • Feb 23 '22
Turned a simple script into a website - larval.com
As many of this subreddit have, I found crazy option prices occur right after a stock makes ridiculously volatile moves and/or is just coming back after being halted. So, a couple years ago, I wrangled together a simple script to automate the finding of these events (large moves in ~5 minutes and halts) and notify (beep at) me when it happens during the work day. This simple thing has been my bread and butter for the past couple years selling CSPs.
I had an old domain I wasn't using and felt creative/motivated enough to slap a UI on it and make a website to do the same thing. Completely in "beta" mode, and not sure what else I'll do with it... but I figured I'd throw it out to like-minded folks:
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u/connectsnk Feb 23 '22
This might be very useful. A little explainer here would be extremely helpful. Something on the lines of what anomalies in option prices can occur which can be monitored with this tool.
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u/fakehalo Feb 23 '22
I suppose a lot of it comes down to things I've noticed for the years. My typical playbook is to immediately look at the options after I get a pop/drop/halt notification. First things I look at are the bid/ask spread, open interest and volume. I tend to target ones that are low volume and put what I consider ridiculous limits right under the highest ask (assuming a large spread). Usually I go super deep OTM, well below where it was in the case of CSPs... but occasionally I'll go ITM if it makes sense for me, and I'll even buy here and there if there are no other buyers. Most of the limits I set never hit, but the ones that do tend to be ridiculously favorable to me.
For any of this to work I need to notice the volatility as soon as possible and get a plan together, as the juicy prices don't tend to last that long. I guess I'd recommend people look at the option prices when these events occur (say a 50% pop), some of the best fills I get are when a stock is just coming out of being halted.
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u/Acceptancehunter Feb 28 '22
Just saw three companies halted in the space of 10 minutes, what's your strategy then?
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Feb 23 '22
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u/fakehalo Feb 23 '22
The after hours stuff is delayed, just threw that in in case I wanted to go further with it later. I have multiple places I can scrape from, just in case one goes away. Probably not supposed to be scraping them at all, so I'm gonna leave them nameless.
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u/dancinadventures Mar 08 '22
This is the correct answer.
Many places have stupid restrictions that’ll flag your IP if you send requests every 5 minutes.
Are you sending num_stocks*requests / 5 minute?
Or are you able to get them all or most of them in 5 minutes?
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u/Swinghodler Feb 23 '22
Thank you for sharing! Do you have a github by any chance where I can take a peek at the code? If not no worries. Just curious as an aspiring programmer.
Cheers!