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Setting Up A Spread Using The Stock Ford As A Example

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First here is Ford's Five Day Chart. Now a look at two series of Calls, one that expires this Friday (today is a Monday) and one series that expires the following Friday. .... Notice the open interest in this weeks Calls are a lot greater than the open interest in next weeks Calls. Short term option players usually don't think two weeks out. Now imagine purchasing ten of next weeks Call at $.40 each or $400.00 and selling against them ten of this weeks Calls for $.31 or $310.00. Your net investment would be $90.00 plus the commissions on two trades. In a perfect world you would then like to see the near term Calls drop to zero and expire worthless and then have Ford next week out Cal options shoot back up again in price on the following week. Now an August 19th review which happens to be a Wednesday. These short term Calls have jumped from $.40 to $.52. Now a Thursday suprise. Ford falls big time wiping out the value of the short term calls. Here is a chance to buy them back...
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Moderna Jumps - In a Good Way

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There was news and the stock is going to jump big time on the opening. Now look at the volume of trading in two of it's series of Calls yesterday. What impresses me is the zero trading activity. Insiders are not catching this action. Now look at it's premarket bid and ask. Now this. ... Look at the price increases. $.08 or eight dollars a contract to over sixty five dollars! Let that sink in. More comments about this to follow.
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Are Pfizer's Bounces Worth Fighting?

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First it's one and thirty day charts. It's Tuesday and we are now going to look at the "in-the-money" 27.5 series of Puts that expire on Friday. A drop in the stock's price of $.50 would do wonders for these Puts. Company insiders are said to be buying shares in this company. The stock has being going sideways for a year. Now it's one day chart early at 9:56 a.m.. To jump this much in the first 30 minutes of trading is a rare occurance. Notice how low they traded down to (between 9:59 a.m. and 10:03 a.m.) in this spike upwards. Now this. A swing from $.32 to $.48. If your trading ten contracts at a time you could have caught some of this action and had the fun of doing this. * Here is how they closed the day. Yes you can pay the downside on unusual morning bounces but you have to be nibble in your trading and detached from this action after you sell out. Take any profit when you see them and just get out. Tuesdays after the close is my least favorite d...
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What If? Stellantis

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What if? One year out options can be amazing trading vehicles. Look at this one year chart. If you watch YouTube videos like "Car Edge" you will see statistics showing that Stellantis dealerships are sitting on two door Jeep Wranglers vehicles for about 230 days before they sell. Other product lines like the Crysler Pacifica can sit for like 264 days or the Dodge Charger, the slowest-selling new vehicle in North America at 385 days. Yet that's only part of there business. In Europe for example it sold 1.37 million vehicles in the first half of 2026, up 3.8% from H1 2025. That said Chinese brands' European sales more than doubled their market share to 8.9% in H1 2026. Stellantis also now owns about 21% of Leapfrog and is now selling these Chinese electric vehicles in South America through it's dealer network. My point is that anything can happen with Stellantis over the next year. It has a Forward P/E ratio of about 5.5X. Now this news on the day. Management at ti...
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Trumph Picks A Friday To Change The Rules.

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This is kind of dirty pool. So the stock and options jumped on this news. Did Trumph's cronies get in on this action? It's difficult to tell as they could have got in a few days or a week ago and they could have bought Call options with longer term expiracy dates. Or his stockbroker cronies could have bought the stock to also profit in this gain. Certainly the authors formulating these policy changes were part of this action. In all fairness I can't prove that insiders profited from this Friday event. Yet here is the thing. Releasing this kind of news on a Monday or Tuesday would mitigate this kind of an event from being as impactful as it potentially could be. Option premiums shrink in value the closer you get to their expiracy dates. Lawmakers know this. They should know better than to allow this to happen. No government policy changes that will directly effect the stock market should be allowed on the trading days of the week when the majority of short term Call and P...
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"Disney-One-Day-Call-Options" on a Friday Morning.

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Disney is starting to move smartly. It's five day and 30 day chart shows us that. Look at the swing in price today on it's $104.00 series of Calls. Very few traders are playing them. Now let's look at the 105 series of Calls that expire tomorrow.They closed near their high of the day. Volume in them is light. Now Friday morning. Both the 104 Calls and the 105 Calls jumped in the first three minutes of trading. Let's now move on in time. Now this at the end of the day. Disney kept going up. ... On Thursday the 104 Calls traded as low as $.36 and closed at $1.00, then to go on and reach $2.60 on Friday. I don't know why so few trader's didn't see this happening..
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Super Micro Trying To Play The Downside After A Strong Earnings Report.

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When a stock jumps bigtime on the opening can you play it on the downside? Now two series of its Puts that expire in two days. Now this. The Puts are starting to go up. What do you do next? Cash out with a slight gain? Here is it's five day chart. Can you see how trading short term options have periods of time leave you riveted to your seat. Now another update. .. Might this be a good time to get out and take your money back? Probably. The longer a stock like this goes sideways the less value the Puts will have. To be continued. Getting out was the thing to do. Here is how Super Micro closed on the day. Don't get married to short term options.
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