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What To Focus On - Part Two

My blog of November 27th was entitled "What to Focus On". Please read it. This week we are feeling a bit of a hangover. Last's weeks triple witching event is over. Stocks that were forced to contract in price to sqeeze out spectatate positions on them are now free to resume there old trading patterns. This Monday morning at 10:20 a.m. the Djia is up 301 points. There are also losers. So now what? Mark on your calendar exactly three months down the road how the markets traded on the first morning after one of these triple witching events and use this same logic to catch the upside on the next "hangeover" day like this. How do you pick the winners? Find a few stocks that have enjoyed a recent upswing and play them to pop on the first trading session after one of these events. This blog is just an observation.

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