Featured

Late To The Party Option Players - Disney

Can late to the party option traders make money? It's something to consider? These Call options expire this Friday. There was news on it before the opening today. The second chart below a few minutes later shows it hanging tough. At 10:01 a.m. we now checking out the Puts. The bid and ask on the Puts are very tight. That also makes us ask what happened to the Disney 101 Calls that we first looked at? Here is what the chart now looks like. More Call option players have jumped in to play the upside that the downside. Might one do a spread and try to play it both ways hoping for a breakout either way? That's an option to consider. Disney has being a dog of a stock now for a year so might some profit taking set in? How is Disney going to pay for another theme park? With that on their plates forget any share buy back programs. They are taking on new risks in a period of global uncertainity. Are late to the party option traders best just to stay away from this unexpected situ...
Post a Comment

A Week With Boeing Up $35.00

"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". Look at what today's "Calls" did. Notice the extremely high number of "Call" options traded.
Now a next day March 11th 10:00 a.m. update. "Boeing" continues to charge up. There doesn't seem to any real news as to why. If your holding "Call" options one of the most difficult things to do is to avoid the temptation to sell out.
What a ride for the "Call" holders. This type of action is someone unusual but "Boeing" is an amazing stock to watch/play when it is on fire. A Friday morning pre-market report. "Boeing" is up something like $35 dollars since Tuesday. Once again what a nice ride for any "Call" holders. Here also is a five day chart after the closing bell.
Now we end the week with the followng news.
Here now again are the March 12 240 "Calls" which are up ten-fold from where they were only a few days ago. Look at Boeing jumping over $17.00 in one day.
What is there to make of all of this? Well, keep this blog in the back of your mind and six or ten or fourteen months down the road when you see it rallying at the start of the week. Don't be afraid to go along for the ride.

Comments

Post a Comment

Popular posts from this blog

Living on Kraft Dinner?

Image
What does the word disconnect mean? As a verb it means "to sever or interrupt the connection of or between; detach". Option trading - one day options - is a disconnect from the world. What happens to slightly "out-of-the-money" Call options on Costco when the stock shoot up thirty dollars on the day? I will show you what happened on Friday to Costco Calls and the options on a few other stocks I frequently watch. What a disconnect from the real world. But before that a look at how the indexes traded. 1) Costco. It's five day chart and a look at how three of it's option series moved upwards in one day. You may not know how to read these printouts but try to read the highs and lows on these option pricings. One printout shows an "at-the-money" option which means you are buying a contract on the stock, good for one day only at a locked in price equal to (or very close to) what the stock is currently trading at. The other two contracts shown are ...
Read more

The Little Engine That Could

Image
Walmart again. It's all I seem to blog about. Here is it's five day chart. The stock keeps going up and the option series are set up in one dollar spreads. Even a fifty cent move on the stock moves the needle on these Calls. Look at how this series of Calls was trading yesterday at 3:00 p.m.. Now here is this same series of Calls just before noon today. Thirty days of upward action like this punctuated by the off day of decline. Now notice the higher volume of trading in the series of Calls with the higher striking price. These are the ones's with more leverage. At the same time look at the five day chart on Costco. The two stocks sometimes trade in tandem. Humpty dumpty sat on a wall .... a had a great fall. Someday soon a fall might happen but what a great ride it has been.
Read more

A Fireside Chat - One Year Options and Thirty Day Options. Which is Better?

Image
Some say to think small, not big. Trying to play Disney options is thinking big. It is a stock slighty out of favor. If we start with it's a three year chart, we will see it is down by about 50% over that period of time. Now it's one year chart. If the stock can break 110 in early 2024 the sky is the limit. It does have a lot of moving parts so anything could happen. Look at these Calls options one year out. One year in options buys a lot of time.They look reasonable. If the stock ever inched up to the $105.00 price level in the three or four months these options would jump up in price by about 50%. Even more if they had really good news. Yet it's the "what-if" aspect of the equation that castes such a trade in doubt. "What if" stories just don't cut it. There are to many variables in play. Then again, why are we even thinking of long-term Call options after a December's rally? Let's switch gears. If consumers are out spending for X-mas...
Read more