---
title: Unusual Volume with Gap
slug: unusual-volume-with-gap
createdAt: 2024-06-09T19:14:11.691Z
---

# Unusual Volume with Gap



***

- **Risk Profile**: Aggressive or Speculative
- **Trade Strategy**: Market with bullish price action, with gap-up move and crossing 200-day moving average (MA)

***

This strategy involves a breakaway gap structure characterized by unusual volume activity. The price action during the gap move is also above the 200-day moving average. The gap typically occurs after the price has corrected by at least 15%, possibly up to 30%. Additionally, a bullish signal is when the 20-day moving average crosses above the 50-day moving average (optional).

***

![](https://lh7-us.googleusercontent.com/docsz/AD_4nXfv3tTPksYUf5X2aBeLFU9d3mg9BcVy3z4JRFrjA-sbdTeDjyYOoNoEpBBOc6F9KPdzNUuTDUtfk5_YICscz1YIFvFyzuFYvI6qnbOYmtL6b7ncg9Q-JP9cQ4rgGbCzza7QmOtJUnAxjzMbaj1r3SnLd4u8u4DWhbdcnxQEqSvYu2gfREFuifo?key=pe4Sgv9c5eQLhAE4ESxBXw "Unusual Volume with Gap")

Options Strategies/Bot Group: Unusual Volume with Gap



![](https://lh7-us.googleusercontent.com/docsz/AD_4nXenpV8_9t3CbZ7sNMyzAfOx5xh2Dux09XDbfCc6hpBjZ05IjX4cA0X0XjzjP8c4RfXrCNgXFrP5q_MMEzg90x6YKsIV9gwwmIYNBsYVsuDu5NT55FsWT-N25aKiQhpTSjoT5arkGRVFWM2QVsGYjPR5Sfc_bNb2wkcLZuPUjRowgnn_8Amfe0c?key=pe4Sgv9c5eQLhAE4ESxBXw "Unusual Volume with Gap")



***

### Bots

In this case, we have four bots under the “Unusual Volume with Gap” bot strategy: 

1. **Unusual Volume with Gap - Sell Put Spread (40/20) - [link](https://www.optioncircle.com/bot/UnsualVolGap2SellP)**
2. **Unusual Volume with Gap - Long Call 50/30/10 Butterfly - [link](https://www.optioncircle.com/bot/UnusualVolGapUp2Bf)**
3. **Unusual Volume with Gap - Leaps  - [link](https://www.optioncircle.com/bot/UnusalVolGap2Lps)**
4. **Unusual Volume with Gap – Call Spread 40/20 - [link](https://www.optioncircle.com/bot/UnusualVolGapUp2P)**

***

![](https://lh7-us.googleusercontent.com/docsz/AD_4nXcN8K1zWbNKihSkEOrH-31gCfqe9rKLisAa4TL-QLm5p9UzV_kDE04h6OzV6eZHg344wdcti945MZ9EzIjSgHrFgKkb-bRomrgicSmaKaPjYJTHTaASvmORsuYLw9_7rr_hkC1NEbb2XVZGFnKSRc0dNNHA613vYSSgmgvErTp1xJVxBQB1w1M?key=pe4Sgv9c5eQLhAE4ESxBXw "Unusual Volume with Gap")

***

### Bot Workflow

![](https://lh7-us.googleusercontent.com/docsz/AD_4nXfKl1TvOdHUN8bCIS-wHrPSMPoW6Zn8hZHAqI4F2kSW_WIej-39HrWhxCwJhlvPZKMxsWktnRXmoiu-gdqOF8VJjsBmGcSzZ8IjPokvBTNmAj8bgj3PRtPn703xlKNKYcIsdtoGMQmppna3TY81Kg9UrR5sIjmy83BPo2NdRHoH8VJc1ZrD3qU?key=pe4Sgv9c5eQLhAE4ESxBXw "Unusual Volume with Gap")

***

### Bot Rules: Trading Strategies

- **Time:**
  - Create a schedule for the bot to run daily, weekly, or monthly.
- **Equity:**
  - Pre-screen technical preferences and import them directly into the bots.
  - Consider the following criteria:
    - **Unusual Volume with Gap**
    - **Price Above 200 MA**
    - **Price crossed 200 MA**
    - **Price 15%-30% Below 52-Week High**
    - **Price > $10**
    - **Open Gap up 2%**
    - **Unusual Vol. Up**
- **Decision (Technical Indicator):**
  - Added additional Real-time or historical market or technical indicators as needed to optimize the performance or minimize losses.
- **Open Position:**
  - Example: Execute a **Sell Put Spread** or **Bull Put Spread**:
    - Set DELTA at 40/20 (mid-price bid price).
    - Ensure open interest is greater than 50.
- **Close Order (OCO):**
  - Close the position if:
    - Profit exceeds 75%.
    - Loss exceeds 50%.
    - Within 2 days before the expiry.

***