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Showing posts from October, 2021

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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.

Ford - An Earning Report

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Ford is going electric, that's the buzz. We all know the story. Earnings just came out on the stock and the Call options jumped on the opening. If you were playing options you had to get out just after the opening. With option plays on earning reports that's usually the way to best way play them. First, I will show the prior day's action. There was a gap down on the opening and 94 million shares traded. That's a large number. People were cashing out after recent good times. Now here is a chart of Ford the next day and here is how two option series traded. Buy in at the close and sell out just after the opening. Look at how high each series traded up to just after the opening. The earning numbers were not all that great but it's the buzz about going electric. Ford is one of the better stocks out there to play earning report releases. ** Scroll up to the upper left and read my most recent blog on MacDonald's earning report.

McDonald's

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I was sitting in the drive through line yesterday at McDonalds redeeming a free coffee sticker won from being there a few days prior. It was a long line up for mid-afternoon. I am not a fast food junkie. I found myself thinking of how the Domino Pizza stock was on a terror for much of last year but not so much now. When we were all locked in last year everyone was ordering their pizza. I was also wondered if they would now accept my little free coffee sticker as it was only thumbnail size. Then when I pulled up to the drive thru window I hit a patch of bees. Apparently for whatever reason they were enjoying being at that window. They gave me my free coffee. Boy it was busy there. I note in this option series that there were only 292 open contracts. That small number suprises me. Why didn't more option players see this coming?

The Topic of The Decimination of Good News

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Aurina Pharmecetical Inc. I have talked about this one before. It has a Canadian history. Here is the news on it late last Friday in the last few miutes of trading and here is how the stock reacted. It closed the trading session at $28.00. Today is Monday Oct.25th and my comments are after the fact comments. I have being playing this stock for years as have some of my friends. I missed the news of this happening when it happened. What a day of the week and what a time of the day for such an announcement of that magnitude! Retail Call option holders have to be out of their Call option positions that expire on a Friday by 3:00 p.m. or they run the risk of their brokerage houses selling them out. Option trading desks play by different rules. Image all the then "just-out-of-the money" Call positions, the 26, 27, 28 calls that would be trading for .03, or 04 or .05 cents a contract around 3:35 or 3:45 p.m. on that Friday. Suddenly they would be worth 100 or 200 or 300 hundred fo

Boeing Puts On A Friday Morning Oct21, 2021

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Some people watch t.v. shows like Star Wars on Friday morning while other people watch the markets trade. I am of the later camp. I blogged all week about Boeing and talked about how the U.S. government is breathing down it's neck, ready to chastise them for any move that they make. Is this mornings upward move substainable on the day? At 10:00 a.m. look at the position Boeing is in. First, here is it's five day chart. Now here is the one day chart as of 9:54 a.m. Now here is how the Put options were trading at 9:43 a.m. Note this is a readout about ten minutes earlier when Boeing was still charging up. Somewhere a few minutes ago they even traded for less. Now look at where the Put options are trading at 9:54 a.m., exactly thirteen minutes later. Look at the volume creeping into this series. Boeing has dropped seventy one cents over this period of time. Now a second look at 11:00 a.m. The value of the options is little changed however the volume keeps rolling in. Now a

Ford 15 Calls

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Yesterday I posted a blog called Ford 14 Calls. Please read it to better put this blog into perspective. Here is the action this morning.Call it the perfect storm. $500.00 in to like $4,400.00 in 90 minutes of trading. Why did this happen this way? Well these option expired this day so if your buying in at 9:32 a.m. you only have a matter of hours to get it right. I talked about the Ford 14.5 Calls yesterday and how they exploded up. Today was a continuation of this excess exuberance. Will this occurance repeat itself next week? No. Next week series of Ford 15 Calls will be expensive to buy into because you will be paying for 4 or 5 days of trading time. The kick we saw today was a one time thing. ** Please press the upper left back button to read one of my most recent blogs about the Ford 14.5 Calls.

Ford 14 Calls

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Ford 14 Calls with only a few days to go. I have talked before about Call option trading on Tuesdays and Wednesdays and I have talked many times about playing Call options on Ford. Look at what is happening. . Ford is basking in a spell of good news. Look also at Ford on the opening last Friday fourteen minutes into the opening. . Contrast this to the time period ten or fifteen years ago when amongst other things they faced rollover issues one model of their trucks. That one issue alone badgered them for many years. Let the good times roll. **** look at the high and low on the 14.5 Ford Calls today. Attention to detail is everything.

Lordstown Motors and Polestar

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The race to go electric can sometimes be expensive and sometimes you have to do unexpected things to keep going. Lordstown has had a rocky ride and announced on Friday afternoon a new partnership. Friday afternoons are the ablsolute worst time of the week to make such announcements if there is a chance investors might reacte negatively to such news. It doesn't give the markets much time to allow this news to sink in. Mondays are better when people are more in a forward thinking mode.That's exactly what happened as you can see from these charts. But first the news. So your taking on a new partner with expertise who also supporting the share price. What's wrong with that? Look at the money they are pouring into this company and isn't time of the essence to get the project closer to the finish line. Will this news eventually end up being viewed as a good thing? How much value do you place on this new companies expertise? It has to be worth something. Here are the January