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.


When it comes to option playing are stocks in the thirty and forty dollar price range good options to play? I would say generally no. Why? Well, it generally takes good news or bad news to cause stocks in this price range to move and they can sometimes go sideways for months and months. Waiting for good news or bad news is not an exacating science. There are exceptions to this thinking, sometimes offbeat airline company stocks for example go charging up quickly for a week or two when it becomes apparent that material changes are happening in their operating environments. Five, ten and 15 dollars stocks and stocks like Caterpillar and Boeing that cost a lot more are where the action is. Harley Davidson (Hog) recently had good news and here is how the stock reacted.
Once again, options on stocks in the thirty and forty are not as much fun to play.


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