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.

Deere - An Introduction to Playing Calls and Puts One Month Out.

Ten days ago I talked about playing Options on "Deer and Company" with one day to go. Today is a Monday I am going to talk about Deere again and show it's one day chart. Look at Deere go up just after opening.
Could you have played the Calls or Puts and made some money? Well only if you where playing the upside in the first thirty minutes of trading. Trading Call or Put options on Deer with four days life left in them is a tough to do. You can get caught off side all to easily. Let me now show you (this now being a Tuesday) the prices of the May 24th Deere Calls and Puts followed by it's three month chart. These are Call and Put options that expire one month out. The action in how they change in value is trend line related. In the last thirty days Deere is up about $30.00 dollars. Many traders feel safer making bets on thirty day moving averages than on let's say four day moving averages. Catch a changing trend correctly and you make out nicely.
Option players can use Call or Put options on Deere which expire in about one month's time to try and catch these types of directional moves. ** Now an April 22nd update at 1:34 p.m. Look at what the 235 Calls are now trading at, the thirty day chart to see how things have changed and the 435 Puts which are exploding in price. See what they are now trading at.
So much for the security of being in thirty day Call or Put positions.


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