CAT Puts

So Tesla moves up in the first few minutes of trading on a Friday and quickly decides to go south. The DJIA closed down on the day 685 points. Here is how one series of Puts, the 425 series of traded on the day. A low of $4.11, the price the 425 Puts just after the opening and a closing price of $33.90. More surprising were the "out-of-the-money 410 Puts. A low of $.33 and a high of $21.28. The most extreme gain was with the 392.50 Puts which has a low of $.03 or three dollars a contract and a high of $4.12 or four hundred and twelve dollares. Do the math of that one. How many times has this website talked trading "one-day-until-expiring-options" on Tesla options. The answer is many times. There was news this week about Musk raising 75 billion dollars for "Space X" and in doing so is selling out only 4-5% of this new company. Musk is the richest man in the world. Powerful people can make powerful moves. So what's my point? My point is that the option mark...

The DJIA is up something like 850 points on the day. Eli Lilly has jumped $50.00 on the day. Happy days are here again. If the markets cool on the opening tomorrow (Friday) could the stock give up some of these gains? If so what would these Puts do? Might the stock give up 25% of what it gained today? Now it's five day and one day chart. $850.00 for a Put on a stock that has jumped up over $50.00 in one day. It's a Put that expires tomorrow. Is this a recipe for failure? At 2:42.00 p.m. the DJIA is up 899 points. Now the action at 2:47:00 p.m. Now this. In at 2:31 p.m. if you like at $850.00 and out 38 minutes later at $1,100.00. That's a gain of $250.00 and all you did was skim a small gain off a hot market. Maybe that could be your trade of the day to avoid all of aggrevations of what might happen next. It would be catching the tail end of a 950 point one day rally. That in itself is not a bad strategy. Now a 3:30 p.m. update. Another small gain. Let's see what ...

I don't like playing options on stocks in this price range. It's exhausting because you have to watch them so closely. Look at this action today on the Rivian $17.00 series of Calls that expire in three days. . With this kind of chart a double in a Call price would have happened somewhere between the 10:30 a.m. to 11:30 a.m. time period. As a reader you might look at this statement with scepticism and say how could something move in price that much in one hour period of time? It's the leverage created by having a $17.00 stock swing fifty cents in one hour. The difficult part is in how to figure out when such a move is going to happen. Now look at today's price swing in one series of Lucid's Calls. . Tomorrow will also bring price swings. Let's continue to watch this series of Calls to help us get a better appreciation for mid week option trading on short term Call options of stocks in the $17.00 range. Now Wednesday. .. This action is somewhat unusual however...

Boeing's chart. It's Calls that expire this Friday. A flat five minutes on the opening. Tesla, now 24 minutes into the opening is also deciding what it wants to do in this space. The Tesla Calls expire tomorrw while the Boeing Calls don't expire for four days. Here now is a look at the Tesla Calls with the same striking price which expire this Friday. They cost more than double to purchase however this printout is 25 minutes later after the stock has rebonded over $3.00. What attracts me to these two situations? First they both dropped a chunk in price on the previous day. Boeing has a cloud over it's head with rising oil prices and concerns about the debt the country is piling up on defense spending and Tesla is caught up in SpaceX coming soon news which is getting a lot of attention. It's a case of buying on the dips and discounting the possibilities of the bottom falling out of both of these stocks. Now a 10:30 a.m. look at these same Boeing and Tesla options...

Before we look at what the "Call-and-Put" option prices are on Nvidia going into a Monday morning I want to show you it's five day chart as of it's closing on Friday. It doesn't really tell us all that much except that it could pop on the opening to regain all that it has just lost. Now it's thirty day chart. Every couple of weeks it seems to swing by $20.00. Now let's look at the price of the 210 Calls and 210 Puts at the close last Friday that expire today which is a Monday.Yes Nvidia has options expiring today. How you feel about which way the market is going to open? Catch the action correctly and you could double your money. Now this on Monday morning. Nvidia opened up $.07 cents and kept going up. The chart might look like it was down on the opening however the downward action you see on the chart was in the last ten minutes of Friday's trading. The stock has jumped so we can now focus on options with a higher striking price, the 217.50 ...