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Why Not To Buy Not Rivian Calls With Two Days to Go?

It's obvious right? If you mess up and the stock opens the wrong way you only have one day for a rebound. Why put yourself in that position? Others might be in the camp of saying why not go for a fifty percent rebound on Thurday's morning opening. The stock sold of on Wednesday on very little volume. A morning pop is possible. The stock has being strong as of late. Here is it's five day chart. Now this, the seventeen series of Calls that expires in two days. They do look cheap after hitting a high of $1.55 on the day. If we look at a 30 day chart we will see that the stock is still in an uptrend. Why not look at the Call options one and two weeks out? Here are the seventeen series of Calls one and two weeks out They would be much safer to play and I will check in on these ones at a later date. So what happened on the Thursday opening? Let's switch gears for a moment and look at how Roku, a much higher priced stock opened and look at how their Call options moved.

Some Notes on Playing Apple

In my last blog I almost made it sound to easy to play Apple Calls and Puts. Let me set the stage with yesterdays and todays action. First. here is how the market was up this Thursday and here is what I did.
This chart shows Apple's Wednesday and Thursdays trading movement. I bought Puts on Apple on Wednesday at 3:13 p.m. which was June 21st only to watch Apple jump upwards in price on Thursday morning. Biden made the news saying saying "We've struck a deal" refering to infrastruture spending and everything surged upwards. Obviously I was misinformed on current events. My Puts expire on Friday (tomorrow) which means all my money in this position is at risk. Then also I was running around all day doing other things and missed a selling opportunity to get out at a slight profit. Look at how this series of Puts traded today.
What did I learn from this experience? Well I should have paid closer attention to Bidens working schedule for the day. That's something you can google that. (Caterpillar and Boeing both surged on his news of infrastructure spending). I learned that on a Thursday morning when things are going against you with any short term option position you don't throw in the towel. I learned to be patient as Apple slowly sold off in the afternoon and I was accepting of just getting back my money. Smart money can play Apple. Look at how this series of Puts sold down the the 45 cent range on the strong openinging this morning. So many option traders consider Apple options to be one of their "go to" stocks to play. Very few options priced below a dollar a contract with two or three days to go before they expire can give you such a ride for the money.

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