Posts

Featured

Deere On Earnings

Here is a look at Deere towards the end of the afternoon after an earnings report. It got beat up pretty bad. What we are now looking at is a printout of one option series which will be expiring the next day were trading towards the end of the trading session. Would now be a good time to buy into these 395 Calls and try to play tomorrow's upside? Lets look at how these options traded the next day. Can you see they hit a high of $4.65 sometime during the following day? I did two very small trades on the Friday morning bounce back. I just wanted to cover my commissions a make a touch. Remember Deere options are extremely difficult to play and with only hours to go before they expire its not bad to take a profit whenever you see one. .................. My times in were 10:14 to 10:31 a.m. and 10:59 to 11.09 a.m. I missed the elusive high of $4.65 which happened after I got out. Part Two. Going forward. Let's look at Deere's five day chart and look at how the 400 series o

HESAI - A New Company To Learn About.

Image
Let's look at this stock as a trading vehicle. Hesai is a company that helps to make driving safer. I am not saying that I endorse this company or know a heck of a lot about it. All I am saying is that I am intrigued that it has options trading on it. Option traders are just discovering it. Just look at the light volumes of trading on it. What does that mean? Well found below are four readouts of how it's "five dollar series" of Calls are trading which will catch you by suprise. What I want to show you is how light the trading volumes are. It's a small company. Small but big enough to get itself listed on a reputable exchange and big enough to introduce the concept of having Calls and Put Options trade on it. All that takes planning. Here are some of it's current realities. It's Chief officer is stepping down and the board is changing. That sets off warning flags. So does this news . Here is it's year to date chart. Eight dollars to four dollars and

Ford Puts - sometimes they will surprise!

Image
Back to an old friend. This blog is about why trading stock options on the stock "Ford Motors" can suprise. It's also about trading options I call "penny like options". In this instance I am trading options priced at twelve cents. For first time readers that really means $12.00. Now, a one day and five day chart on Ford. Can you see how volatile the stock is as of late? Now the five day. Now a look at it's trading in the morning today up until 11:30 a.m.. Now here is my trading experience on the day. 20 contracts in at 10:05 a.m. at $12.00 each and out at 10:38 a.m. for $18.00 each. That's six dollars profit a contract. It all happened very quickly. Are you able to look at the chart above and see how the chart dipped during that period of time? If you don't play options and want to don't start by making trades like this. Well then again some traders only only make trades like this. It's not uncommon to see a $300.00 trade quicky go to $3

Capitalizing On Monday Morning Exuberance - Roku

Image
I have spoken about Roku in past blogs( April 29th, March 27th, Feb. 17th). I like playing sideways moving stocks. Here is an entry point I made at 1:52 p.m. last Friday. I purchased two Roku May 24th 58 series of Calls at $129.00 each. The stock was going sideways all week and then dipped a touch on Friday. Would new life come into the stock? Monday morning saw excess exuberance so I got out of my Roku position without waiting to make more. Here is what the chart looked like. I like selling into strenght like this. At 10:05 a.m. I got out at $2.97. Remember I got in at $1.29? Here is it's one day chart. Not a bad time to sell out with Roku at 10:10 a.m.being the high of the day. I did try to play it down after I sold out however I was off a few cents in my entry point of my Puts purchase and then I didn't want to chase it. At the same time another stock was peaking and attracting my attentions. Carmax. It's not a stock I follow but I just happened to see it spiking. Ot

Sweet Spots In Option Trading - Deere

Image
A fly on the back of a horse. An option contract that expires at the end of the day on a billion dollar company that few traders dare to play options on. A company for the most part void of news releases with Call and Put premiums which are prohibitively expensive. Which stock am I talking about? John Deere. Here is it's five day chart. Now here is it's one day chart on Friday which is the last day on the above five day chart.. Can you see how it went up in price in the early morning trading and then sold off? Think about how this would effect the Puts. Yet then again who would have the nerve to be playing them? In the early morning trading they were down to $98.00 a contract and then a few hours latter hit a high of $420.00. Look at how insignificant both the "open interest" numbers and the "volume of contracts" traded numbers were on the day. Friday morning reversals are something that some option traders learn to cherish. If you can't get your hea

I Wonder How The Back Office Is Going To Handle My Complaint

Image
The blog is about dealing with the back office of the brokerage company I trade with. This story happened today. Todays trading session has closed and I just made a telephone call to them just after the market closed to voice a complaint over how I feel I got short changed. Here are my background notes. 1) It involves trading the 370 Boeing Puts that expire at the end of this week. I bought in at 10:08:34 a.m. and sold out at 2:59:38 p.m. I was stuck in this position longer than I had hoped. I got lucky and did O.K., however that is not the point. 2) Here are my two "in-and-out" tickets. Two contracts in at 10:08 a.m. at $163.00 each and two contracts out then "at-market" for $365.00 each at 2:59.38 p.m. Now here is Boeing's one day chart. It dropped precipitously from 2:59:00 p.m.to 3:00:p.m. I just happened to be watching it at the exact time of the crash. That's when news came out that the "FAA opens Now a Boeing Inquiry over 787 inspections"

Caterpillar Puts - A Strange Twist Of Trading.

Image
One day options that expire the next day? Crazy, stupid, nuts you might say. It's like playing chess with the computer. You never win. Hear me out. Knowledge can come from the craziest of places. I like trading options on Caterpillar because when it starts to swing, it can move quickly. It's also a stock void of random new releases. That's one of it's good qualities from a trading perspective. In contrast, random new releases mean that you're subject to the wind of changes for unexpected reasons. The stock Ford for example has random news releases about a thousand little situations happening almost every other day. If you read my last blog you will see that a few days ago that Caterpillar went up six dollars and then down seven dollars in a two hours period of time late in it's afternoon trading session. Many stock traders are now migrating into becoming "stock/option" traders and the demand to learn more about how to trade options is now going through