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GammaRips Cheat Sheet — V5.3

What this system does

Scans overnight unusual options activity → emails you the top 1 trade per day (with a clickable card linking to gammarips.com/signals/{ticker} for rationale) → you execute from your phone at 10 AM → stop + target pre-set → sell at 3:50 PM day-3 if neither hit. Public live-stats panel (cohort_stats/current Firestore doc) reflects the cohort starting 2026-05-07 (post-lit-audit reset).

Your daily routine

Time Action
7:30 AM ET Email arrives (or nothing — skip day). Webapp + WhatsApp push fire at the same moment.
10:00 AM ET day 1 Buy 1 contract at market. Set −60% GTC stop-limit AND +80% GTC limit sell on Robinhood
10:00 AM day 1 – 3:50 PM day 3 Phone in pocket. Both exit orders armed.
Any time either fills Cancel the other order (Robinhood doesn't auto-OCO options)
3:50 PM ET day 3 If still open, cancel both pending orders, market sell. Done.

The strategy

  • Entry: 10:00 AM day 1
  • Size: $500/trade ($2k bankroll, max 1 position at a time)
  • Stop: −60% option premium (GTC stop-limit)
  • Target: +80% option premium (GTC limit sell)
  • Timeout: 3:50 PM on day 3 (3 full trading days held)

The signal filter (what reaches your inbox)

Enrichment layer applies these gates; only signals passing ALL get ranked:

  1. Overnight score >= 1
  2. Spread <= 8% (tightened from 10% on 2026-05-06 per lit-audit H11)
  3. Directional UOA > $500k
  4. V/OI ratio > 2.0 at focal strike
  5. Moneyness 5–10% OTM (tightened from 15% on 2026-05-06 per lit-audit H12)
  6. VIX <= VIX3M (skip entire day if backwardation)
  7. Recommended contract OI >= 20 (so it has a real market)
  8. Recommended contract volume >= 100 (it traded yesterday in size)
  9. No earnings near hold window — exclude any ticker reporting in [scan_date, entry_day+2 trading days]. Window includes scan_date to catch AMC prints that contaminate the V/OI signal pre-entry. Literature-anchored hard rule (De Silva et al. 2026 Review of Finance: retail loses 5–9% per event). Fail-closed if FMP earnings calendar is unreachable OR returns a non-list payload (quota-exhausted).

Top 1 by directional V/OI sent by email — but if rank-1 has earnings overlap, the engine falls to rank-2, etc. (top-10 candidate pool). If all 10 have earnings overlap, the day is skipped.

Math

  • Deep Research modeled EV +1.8% to +3.2% per trade post-upgrade
  • At $500/trade × 10 trades/month × +2% EV = +$100/month compounding
  • Max per-trade loss = $300 (60% of $500)
  • Max per-trade win = $400 (80% of $500)
  • 5-trade losing streak = −$1,500 (75% drawdown) — size accordingly

When things go sideways

  • No email → do nothing
  • Missed the 10:00 entry → skip, don't chase
  • Missed 3:50 exit on day 3 → GTC stop and target still armed; close next morning open
  • Forgot to cancel the other order after one filled → risk of stray fill on your next trade. Check open orders every morning.

When to revisit

  • After 4 weeks of real data
  • If EV > 0 → increase size
  • If EV < 0 → pause, rerun Deep Research angle

Services (reference only)

overnight-scanner → enrichment-trigger → signal-notifier (email) → forward-paper-trader (ledger)

Source of truth

This file + docs/TRADING-STRATEGY.md + docs/DECISIONS/2026-04-17-v5-3-target-80.md + docs/GLOSSARY.md. Everything else in docs/archive/ is historical.