CAT Puts

Itching to find something to do in the markets on a Tuesday morning? Well it's not a typical Tuesday morning from a trading perspective because Monday was a holiday and the markets were closed. Traders are just getting back to work. What about Nvidia options that expire at 3:00 p.m the next day? You're gauranteed that the liquidity found in these options will be great. The markets are opening somewhat sideways with some strenght in the Nasdaq as shown as of 10:20 a.m.. The real action happened in the first few minutes of trading which is commonly the case. Look at this early morning readout of Nvidia just ten minutes into the trading session. ... What do we see happening? Focus on it's chart. Nvidea closed at 215.62 and opened at $215.70. Then it moved up slightly like it did on it's previous Thursday's opening and to a lessor degree on it's Friday opening.(This is a one day chart as of 10:45 a.m.). In the very first two minutes of trading the Puts slipped do...

Boeing is one stock you can mess around with on Friday mornings. It can move like $5.00 in one day and it's last day to expiring Calls and Puts often pay off big time. Here I am this morning looking at it's five chart. I like the fact it opened stronger and then came off. Look at these two "out-of-the-money" series of Calls that expire today. It's a gamble that requires Boeing to go up. That's why them are priced so cheap. A lot can happen in the next five hours of trading. Look at how it was trading at a higher price on the previous day. Notice the 60 and 62 percent drops in value on these "out-of-the-money Calls" in the first eight minutes of trading. Now this. Boeing continues to stall out. Now let's jump forward to the 2:50 p.m. time period. The deadline to get out is 3:00 p.m. ... So what is the takeaway? A strong market helped the outcome. The $.24 cent options hit a high of $.79 and the $.55 options we first looked at jumped as high a...

First, forget everything you know about Tesla's current state of operational history. Forget their news about their new factory in Germany, their new models and how many kids a fifty four year old fellow named Elon Musk has. Focus on the moment. In this case it's a Thursday afternooon and we are looking at options on Tesla it that expire the very next day. The interesting thing in this situation is that we are catching Tesla trading flat on the day. It has maintained for the last 2.5 hours a slight predisposition to the upside. Now this as we approach 1:00 p.m.. We find a price of $4.70 for the Call option shown above. These Calls are just slightly "in-the-money" and expire the next day. Things could change even before the end of the day. It takes big money to buy in and the risk is high. I get it. The Puts will also cost you chunk of money. It's Tesla and you are trading with some of the ...

Here is a classic "step-down-chart" with one minute of daytime trading life left in them before the markets close at 4:00 p.m.. The stock is Nio. ... This printout of "in-the-money" Call option also shows one minute of trading life in them before the market closes. It's Tuesday and these Calls expire this coming Friday. You are purchasing three days of market trading life. To purchase one thousand shares of this stock would cost you $5,750.00. To purchase options that control the price movement of one thousad shares of this stock for three trading sessions would cost you $370.00. ( Ten contracts at $.37 each). These Calls are also currently $250.00 "in-the-money" which means if the stock totally goes flat for the next three days your options will still have that amount of intrinsic value left in them. Now think about this. Many option accounts in the U.S. enjoy free option trading and there are discount brokers in Canada who can save you money. A fl...

The premiums are to expensive. Here is what I mean. Look first at Nvidia. Now look at the price of it's end of week Calls and Puts. Do you see the prices of $7.14 and $720.00? Those are both crazy high numbers. If we look at Walmart it's the very same story. Super expensive Calls and Puts if we are looking four days out. Suprising Exxon with a much more interesting five day chart have options that look somewhat reasonably priced. Look at how few Exxon Puts there are outstanding compared to the Calls. Few traders see any positive Middle East developments. Now consider how this narrative is so much different than the one day action I talked about yesterday on Nvidia's last day to expiring options. One day options offer so much more action. Let's revisit this blog over the next few days or so to add more commentary to this story. Now the Puts on Exxon at the close on Wednesday. Let's check back on Friday's close. * Nvidia went from $222.32 down to $215.33, Wal...