Like most strategies it works until it doesn’t. If you’re on margin it will stop working more quickly. However it’s more likely a stock with the right beta will oscillate like this fairly often and let you make your small gains. But you also miss out on the big gains and also are left holding the bag when the stock drops 50% overnight on some news.

It’s a classic “picking up nickles in front of a steam roller” strategy. But it could work for a really long time. Until it doesn’t.