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Young People And Options

Let me spill out some information. Next-Generation Investors Are Different. An organization called "Finra" published this information. In a 2021 survey the Finra Investor Education Foundation found that 36% of respondents aged 18 t0 34 said they have traded options. That compares with 21% of respondents ages 35 to 54 and just 8% of respondents age 55 and older. Then there are crypto investors. According to something called a Pew Research survey based on Feb 2024 data, 42% of men aged 18-29 have invested in, traded, or used cryptocurrency compared with 17% of women in the same age range. Interestly, just 17% of all adults say they have invested in, traded, or used a cryptocurrency, according to the same 2024 survey. When it comes to buying on margin,in 2021, just under of a quarter, or 23%, of investors ages 18 to 34 said they have made purcheses on margin, compared with 12% of respondents aged 34 to 54 and 3% of respondents age 55 and older. Opening accounts is now easier and...

Livewire - It Appears Investors Are Now Giving Up.... Yet On Light Volume Of Trading..

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Electric motorcycles - what a great concept. A blast to drive. But wait. They are not really practical because of their range and they are terribly expensive to purchase. Yet if a person had lots of money, a three or four car garage and two or three motorcycles already in it then why not add one of these models to your collection to spice up the mix? Why wait, why not buy one now? One question lingers in the air. Would buying one of this year's models be a trap knowing that next years model or the model the year after that might cost slightly less and most likely to be both superior in design and offer additional driving range? (current mixed use riding is 152 km and more if just in the city). As an example it was announced back in January that another new model was being offered to their product lineup. Maybe adding new models way to add creditability to the voyage they now find themselves on. If anyone is going to build one, who is it going to be? Harley Davidson would seem to be...

A Stock Formation To Watch For. This Time It Happens to be McDonald's

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It doesn't really matter which stock it is but sometimes a chart formation like this tells you in advance something is going to happen. This time it is McDonalds. Here is what is cooking. So what is the stock formation I am talking about? I call it the "step-up-formation" chart for lack of better words. Last Thursday it stepped up and then held it's gain all day Friday. That's an important ingredient of a "step-up-formation". There was no faultering and then there was instant action to the upside on the following Monday morning! Now a look at this stock on Tuesday at around noon. Everything that's going to happen from here on in are just crumbs in comparison to what just happened but look at this Tuesday mornings action. The very moment a large block of shares traded (you can the spike on the chart) two analyst came out with these following remarks. Go figure. The end.

The Relationship Between "In The Money" Call Options and "Out Of The Money" Call Options

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Which are better to speculate in? Well lets pick a stock at at the close on Monday February 10th and look at how the options on it that expire on Friday in four days time have traded on the day. The stock that we will pick will have closed the day on the upside. Let's pick a stock which has options trading on it in one dollar increments. The stock we will be watching is Walmart and the option series we will be watching have striking prices of $101.00, $102.00, $103.00, $104.00 and $105.00 dollars. What is the purpose of this exercise? Well I want to point out the leverage that different series of Call options have. I also want to mention that the higher "out-of-the-money" options have a higher probability of expiring worthless than "in-the-money" or near to being "in-the-money" Calls. Catch the right directional move on the stock and watch the value of your "out-of-the money" options explode. In contrast, a Call option already "in-the-m...

The Wrecking Ball Picture And Deere Sales Fall 30%.

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Barron's had this picture as their cover page this week. It's the name "Trump" stamped on a wrecking ball. There is commotion all around it. Tesla was down $42.98 or 10.1% on the week. On Friday morning it was up a touch in early trading and then tanked some more as the day progressed. The D.J.I.A was down over 300 points on the day. Day traders in on the opening playing it going down could have made some serious money. Look at how low these Puts traded down to around 9:50 a.m..Yet then again, who would have the stomach to be buying "out-of-the-money" Puts with less than a day to go? Now here is a look at how the 380 Puts traded on the day on Tesla. Going back once again to the 9:50.a.m. time period they would have being a much safer (yet potentally less rewarding experience than the 370 series) to play. Why safer? Well the stock in the early morning trading was around the $380.00 level not like the ten dollar "out-of-the-money" price range as i...