Why It's Difficult To Play Options With Four Trading Days Left In Them.
The premiums are to expensive. Here is what I mean. Look first at Nvidia. Now look at the price of it's end of week Calls and Puts. Do you see the prices of $7.14 and $720.00? Those are both crazy high numbers. If we look at Walmart it's the very same story. Super expensive Calls and Puts if we are looking four days out. Suprising Exxon with a much more interesting five day chart have options that look somewhat reasonably priced. Look at how few Exxon Puts there are outstanding compared to the Calls. Few traders see any positive Middle East developments. Now consider how this narrative is so much different than the one day action I talked about yesterday on Nvidia's last day to expiring options. One day options offer so much more action. Let's revisit this blog over the next few days or so to add more commentary to this story.
