| | | | Overnight Holds Deliver 200-500% Returns: Why 24-Hour Market Maker Hedging Outperforms Intraday Exits
Here is something that might surprise you: while most traders celebrate doubling their money in an hour, they are leaving massive returns on the table by exiting too early. The data from our recent analysis reveals a striking pattern — traders holding positions overnight consistently capture 200-500% gains compared to the 50-100% returns from intraday exits.
I will be honest about my own approach: personally, my trading style is taking a 50% winner in an hour and moving on to the next trade. With so many opportunities hitting my scanner daily, this works for me. But here is the thing — people are making more money than I am because they are holding overnight. The testimonials speak volumes: I will report a 106% gain and then traders write in with 300% returns from holding the same position overnight.
The 24-Hour Market Maker Window
Why does this happen? It comes down to understanding how market makers operate. The market maker's aggressive buying can go on for more than just a few minutes — oftentimes it is over the first 24-hour period. When large options orders hit, market makers do not just make a quick adjustment and call it done. They systematically hedge their exposure, and this process extends well beyond the initial price surge.
The CoreWeave trade perfectly illustrates this phenomenon. On Sept. 9, the scanner flagged a free ride on CoreWeave, and anyone who placed the basic options trade could have come back the next morning to a monster return north of 500% by 9:39 AM. We are talking about $7,534 in profit from a modest $1,500 stake — all from holding less than 24 hours.
Solving the Pattern Day Trading Problem
This discovery has huge implications for smaller accounts. If you are trading with a smaller account, you do not need to worry about the day trading rules — just hold them overnight. Instead of being restricted by the pattern day trading rule, traders with accounts under $25,000 can actually benefit by being forced to hold longer.
The math is compelling: most of my big trades, the ones paying 200%, 300%, 500% on CoreWeave, happened overnight. The biggest winners are going to come from those overnight winners. While quick profits feel satisfying, the extended hedging activity creates sustained buying pressure that rewards patience with exponentially larger payouts.
Picture this scenario: you take a few seconds to place a quick trade on your phone, come back less than 24 hours later to an extra $7,500 sitting in your account. That is the power of understanding market maker behavior and letting their systematic hedging work in your favor over the full 24-hour window. | | | | |
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