CAT Puts

Nio was the tenth most actively stock traded by share volume on the NYSE this week. It often makes the top five list. It's a company making Electric vehicles. One caveat is however that a few years ago this stock was was trading at a much higher price. Ironically that's when it was losing a lot of money. Now it'starting to make money for the first time. Look at it's five year chart. The short interest in Neo is around 6% which is not that big deal. It's a difficult stock to play options on. All options on stocks in this price range are difficult to play options on. Also their monthly vehicle production numbers (which somehow miraculously appear on the very first day of each month) can be all over the map. New models are always being introduced while older models seem to disappear. BYD is also experiencing the same issue. Did the stock explode this week after releasing these production numbers? No. Here is it's one week chart. Here is how the "six-serie...

If your new to option trading you wil not have the courage to play "last-day-until-expiring options". I get that. Perhaps a mid week option trade would be better. Find a chart pattern that looks interesting and buy yourself a three day ride. Or safer yet, buy an option on Friday at the close with five days of trading life left in them. Correctly picking the right directional movement over such a time period would instill a feeling of confidence in what you are doing. If you fail in such an adventure what would I advise you to do? Give up? No. Study harder. Now let me throw this one at you. Here is a recap of a blog I posted yesterday where an option trade doubled in price in just less than ten minutes. In all fairness most newbie option traders would not be purchasing "out-of-the-money"Call options which expire in only a few hours. What I am about to say may sound a tad stupid. If you want to jump into the world option option trading Tesla is one of the top stocks...

Here it is. What's going on? Something must have happened to drop the stock down. How did the "12 series of Calls" and the "11.5 series of Calls" trade on the day? What about the "12 series" of Puts? So what happened? So how did Ford finish out the week? The most obvious trade of this week was to buy Ford Calls on the dip after the release of good news. How hard was that? Yes with patience youu can learn to teach youself how to play short term options.

It's only down a touch. Here is what one series of it's Calls are doing. Now this. All that in just under ten minutes. * Was that a wise decision? Look at this. Yes it was. Now there is a new question. What's going to happen next? Here above is it's chart mid afternoon. It's best just to stay away because of the high degree of risk. Now look at how it's trading later on in the afternoon at 3:05 p.m.. Look at these mid afternoon Puts. Lets pause for a second and think this out. Getting in around 2:00 p.m. and getting out at the 3:00 p.m. deadline was another option open to traders late in the trading session. Last hour trading patterns share similarites with early morning trading.

It was stronger than expected. In a blog I did last week on April 24th here is how the 830 series of Calls were trading that day. The open interest and volume of trading in the Calls at that time was next to nothing. Here is how they traded today on their earnings report news. They more than tripled in price in one day. Only 29 contracts traded on the day! Traders were afraid to shell out the large amount of cash $2,771.00 to be exact, to be in the game. That's just to much money. The return was $7,235.00. That is more than a double. Was I wrong for not recommending them as a purchase? I was saying that Caterpillar was trading at lofty levels and I followed the Puts instead which ended up going sideways for a few days. There is always a bit of nervousness just before earning releases. The game with Caterpillar will continue. Now this. It now looks like it's going to go to $900.00 or even $1,000.00 per share.

First a look at the one day chart on a company named Big Bear a.i.. The second chart just above is a five day chart so the jump I am talking about happened on the fourth day of this five day chart which was Tuesday. On Wednesday as you can see the stock slightly retreated. Next you can see how on Tuesday the four series of Calls went from $.04 to $.25. I have blogged about this company in the past. A few months ago this stock was on the most active list week-after-week. Here is it's "year-to-date" chart. This story keeps going. The stock ended having a lessor bounce on Thursday. It was an interesting bounce with a portion of it happened at exactly 2:00 p.m. and lasted for about an hour. Here is what the bounce looked like and this time we are looking at the 3.5 series of Calls which is a lower series of "in-the-money" Calls than we looked at two days ago. Slightly "in-the-money" Calls are the best options to use in situations like this. While al...

The stock opened down and jumped at 9:31 a.m. Look at this chart. In our last blog I followed the trading pattern of it's Calls all day. Had you placed a premarket, "at-market" ticket on the 12 series of Calls your guarented fill on the opening would have reflected the drop in the stocks price in the first few seconds of the opening. Somewhere between 9:30:00 a.m. and 9:30:59 a.m. the 12 series of Calls dropped in price to $.57. Then in the first five minutes of trading they rebounded to a high on the day of $.76. "At-market", "premarket" tickets in this instance would have guaranteed that you would be part of this action. The flip side of this logic is that there were no guarentees that the stock was going to go up. The use of "at-market" tickets on stocks in this price range with four days of trading life left in them should be included in your bag of tricks. Scarier is the use of this type of order on "last-day-to-expiring" opti...

Ford one week options. It's kind of random. Throwing money into one week Call options on a stock that was down last week. Here is how the 12 series of Calls are priced going into Monday's opening market. . If the stock has a good day these options could go to $.90. It's not much of a trade however if you're using a discount broker to do your trading it could be a good "in-and-out" situation. It could also be a real drag if the stock starts to tank lower. Now look at this recent five day chart on Ford. I used it in one of my previous blogs. Ford is known to jump on good news. Now this question? Does the simplicity of my thinking scare you? I also follow Nio but I don't like the way it trades. Here it is going into todays opening. Nio like other EV companies are battling it out for market share. I don't trust the narratives of what they are up to. Five day out options (options that expire this Friday) in a way give you a one day free ride, meaning the...