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Showing posts from August, 2021

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One Week Options. Are They A Good Bet In Times like This?

Look at how these these four stocks traded last week. 1) What a great week for one week Call option players on Boeing even though the stock ended up down .83 cents on the week. 2) Roku. Roku hasn't yet recovered from a not so good quarterly report. Roku lost $1.13 on the week. (Netflix in somewhat the same space was up $35.780.) 3) Disney suprised. I talked about that in a recent blog. 4) Now Caterpillar. It was up $12.83 Now The D.J.I. was down .11% or basically flat. In good times Call options can be your best friend. To be continued.

Robinhood Now Has Options On It

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Blackberry sometimes follows A.M.C. and now options trade on Robinhood. Look at the trading volumes. What a day for all three of them. On day two they all lost steam. Going forward line up all three of these stocks on your screen together. Watch out. When one of these three start to go up the other two will most likely follow. It's a cult like thing. I don't know how Robinhood is going to sell it's sizzle going forward. Brokerage stocks with no proven track record are not something instiutions are going to take notice of.

The Power of "Ford" Options

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Why am I stuck in the mud watching Ford when there are hundreds of more exciting stocks to watch? That's a good question. The answer I guess has something to do with the concept of leverage and how options on stocks in the five to fifteen dollar price range can sometimes have explosive moves based on percentage increases in short periods of time. Look at this week's chart of Ford and look at the opportunities it provided option playes. So the question then becomes how is it possible to anticipate these moves? Well the first big move upwards on the far left hand side of the chart was an earnings release explosion. The following chart better shows how the stock traded in the few days leading up to the release of this news. That was an instant double if you were paying the short term Calls. In at 3:58 p.m. on the previous trading day and out at 9:34:00 a.m. on the following morning. Trying to anticipate earning reports is tricky. With Ford there were reports of chip shortages