Been researching and practicing GAPS lately. Played ADBE and GOOG calls in practice and bought 20 contracts on PAYX real money. Bought on Oct 11 @ $1.05 sold today for $1.45 for $800 profit from $2100.00 investment.
Got 3 stocks to watch for a GAP play. Don't expect anyone to play these with real money because they are my research and not yours, but I am putting them out there as validation (good or bad) for by technique that I will share if it proves to be valid over a period of time.
All trades are based on the Daily chart, so entry would be near the EOD when the price target is broken.
CALLS
ORCL if price at EOD is > 33.09
UNP if price at EOD is > 153.90
Thus far, all trades using this technique have been sucessful.
PUTS
CSCO if price at EOD is < 22.78