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Living on Kraft Dinner?

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 ...
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"Revisiting My Last Blog on Ford Dropping One Dollar"

"Ford" dropped hard last week during a one day period of time as did "G.M.". Both stocks were more skiterish than usual. The reason for this was later attributed to a storage of chips. That's strange, why was this new news? Here is what the two stocks did.
I mentioned we should be watching "Call" options which expire not a few days after this happened but to look a few weeks or many months out. I suggested the May 21st "Calls" when they were trading at bid .45 ask .46 and the Jan 11th "Calls" when they were trading at 1.71- 1.72 . Now here is a look where they are at now.
It's not much of a gain but a small gain in the right direction. 'Playing the market' to me is bit of a misnomer. The more trading you do the better you become in reacting to unexpected situations.

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