Posts

Showing posts from March, 2021

Featured

What Happens When You Get Four Stocks All In The Same Sector Going Up In One Day On A Monday?

First of all it usually means something good is going to happen in the sector. It doesn't really matter what it is or why. This time it's in a sector we can call "used vehicle car sales". Some option traders trade exclusively in this sector as you sometimes see blocks of 20, 25 or 50 contracts trade at one time. Well, not so much as of late. It's big "retail-money" or trades made by wealthy individuals. Why spend millions of dollars building up a car dealership empire when you can follow and profit from what is happening in the industry just playing stocks and options on it in the right direction? That plus the advantage being able to take holidays when ever you want. Here they are. 1) NOW HERE IS A CHART OF CARVANNA. I have done recent blogs on this one. Here is it's five day chart. Is everyone hoping for interest rates cuts? (Jerome-Powell-Jackson-Hole Annual Summit) to come later this week, just another speech by some old man). If rate cuts star...
Post a Comment
Read more

"Looking at "Ford" Options And Trying To Illustrate How Volatile They Are"

Image
Let's start with a definition of volatile. "Liable to change rapidly and unpredictably, especially for the worse". "Ford" is priced somewhere in the $13.00 range with with volatile "Put" and "Call" options offering excellent liquidity. Here now is a five day chart on "Ford" and here is the closing price of the 13.50 series of "Call" options. Let's see what happens tomorrow. Bid .14 and ask .15. Buy one hundred contracts near the close today and see if you can get out tomorrow morning and make $500.00. Yet then again the chart is going sideways so what happens if the stock sells off on the opening tomorrow and your stuck with "out-of-the-money" Call options" with only four days life left in them? That wouldn't be fun to wake up to. The chart doesn't help us very much. The point is that looking for directional moves on stock early in the week is a difficult game to play. Here now is the next ...
Post a Comment
Read more

A Week With Boeing Up $35.00

Image
"Boeing" is up over eleven dollars on the day and the DJI is up over 350 points. It's 1:17 p.m. in the afternoon on a Wednesday. What are the odds of being able to make money playing "Boeing Puts" on the downside which expire this Friday? 50:50? The real question is why would you want to? The stock is now up over twelve dollars on the day. Here is the daily chart and here are two near term "Put" option positions. Would now be a good entry point looking for a reversal? Notice in the twelve minute difference in the period of time between these two printouts "Boeing" has gone up by almost a dollar. Other stocks like "Disney" and "Caterpillar" sometimes have five dollar a day rallies and sometimes they don't stop going up for a couple of days. When a stock goes up twelve dollars in one day you can't really wander in willy nilly hoping for a reversal. Now here is an end of the day chart on "Boeing". Lo...
Post a Comment
Read more