Posts

Showing posts from January, 2022

Featured

Costco At The Start Of The Week - With Rising Oil Costs.

Recent Costco blogs have illustrated how "time values" get eaten up the closer they get to their expiracy date this Friday. Here is a five day chart mid morning on a Monday. Now this. The Costco 1,000 Call option. Costco is down $9.23 at 11:51 a.m. to $999.20. Might it rebound back up again? Now a one day chart and the closing reading on the 1000 series of Calls. This afternoon move was nothing. Let's watch and see what happens tomorrow. This is an expensive game to be in. Costco can easily move ten dollars or more on any morning. Here we are again on Tuesday morning at 10:00 a.m. Notice the very low volume of trading. This is a high risk/ high reward situation. To be continued. Now Tuesday and it's closing reading. It is off on the day $5.58 and off $6.69 on Monday. It's easy to get caught offside on these options. Now here is it's five day chart on Wednesday morning. The stock and the Call options are down again. Higher energy prices are now a new expe...
Post a Comment
Read more

Disappointment on The Opening - Caterpillar Earnings Report

Image
Caterpillar's earnings report. What I see is 4th quarter sales up 23%. Strong 4th quarter earnings of $3.71 per share.That's a solid number. Just think, the supply chain issue isn't being used as a mistake. Now look at the the opening options market. The stock is down on the news. Management made a few remarks about near term headwinds. They do that sometimes to temper growth expectations. These two quotes are the 205 Call series which expire today. One is at 9:44 a.m. and one is at 10:03 a.m.. They would be very dangerous to consider purchasing since its very unlikely that they could ever shake off this downward spike so early in the morning. So now what? It's at this time in the morning when the decision to reacte to this bad news gets tricky. The stock is down like ten dollars and the DJI is having a good day. There is a strong tempation to jump in on the upside hoping for a quick reversal. That's one of the things that makes option trading so difficult. One...
Post a Comment
Read more