The Dow Up 457 And the Nasdaq Up 460.70

Look at these gains today. Today is a Thursday. Meta is up $18.04, AMD is up $17.49, NVDA is up 110.55, AMZN is up $6.00, ELI lILLY is up 23.75, SUPER MICRO is up $241.52, NETFLIX is up $15.12, COSTCO is up $11.38 AND MODERNA is up $11.85. Gains of $110.55 and $241.52 in one day on two stocks! What's that all about? Well warning bells should be going off. We must be at a short term top. Three stocks stand out to me that are having changing stories. 1) Moderna. 2) Rivian. 3) Lucid In these crazy markets a lot of these stories get buried. Option players in these markets are getting whipsawed and it is getting to be to difficult a market to play in. Once this final round of earning reports are over things should get back to normal.

How The Big Option Traders Made Money This Morning

In most of my blogs I poke around talking about speculating in options on five and ten stocks and sometimes talk about the action in Boeing or Caterpillar. It's all kind of introductory stuff. This blog is different, it's about Amazon, a stock that trades in the $3,500 price range per share. To rich for your blood you might say? I agree but that is where the action is for many of the sophicated option traders. It's big money chasing big rewards. Yet the basic premise of how things work remain the same. This week there are weekly jobless claims reports and the Institute for Supply Management readings on manufacturing activity for the prior month, amongst other reports. The first few days of any month are always busy days of economic reports.
Amazon sometimes exhibits the jitters and it can sometimes be blind sided by bad news. Bad news can send the stock down seventy five dollars in one day. Here is it's trading action yesterday. It gained $8.00 on the day but it was down $25.00 in the last two hours of trading. That's the jitters I am talking about, sellors getting out before the release of job loss/ gain numbers.
So hear we have a stock closing on a Wednesday at $3,479 per share. Would you have the guts to buy in just prior to Wednesday's close a Call option with a striking price of 3,500 which is $21.00 dollars "out-of-the-money" that expires in two trading days? Here is the series of option contracts I am talking about and here is where they closed. They closed at $11.20 a contract with over 31,000 Call option contracts trading on that series in one day! Then in the next the next printout I will show you what price they traded up to on the Thursday morning opening market. Look at how these options jumped up in price.
$11.20 to $19.55 just after the opening at 9:34 a.m. Amazon jumped up $22.00 on the opening. Some option traders trade in a different league.


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