Featured

This One Is Too Nervous To Watch. Pfizer

This is a short blog full of twists. Try to get through it. First a five day chart of Pfizer. chart. In the past week it was up $1.05 and it was the 7th most activity traded stock on the NYSE most active list. It's in a breakout mode. Look at how it traded over the last three years. This breakout mode might last a few days, weeks or months. This stock has a history of moving somewhat slower than most stocks. A second quarter earnings report comes out July 30th. If it's good that could add a touch to the stock's price. Now this. As a general rule stocks and options on stocks in this particular price range are difficult to play and in this case everyone is following the same story. Fred down the street and John around the corner and Mark across town are all dialed into the same commentary. There is nothing that really gives you an edge when it comes to playing it. That's the problem. Here now is a look at the Pfizer "next-week-out" $30.00 series of Call optio
Post a Comment

Deere Calls

On April 7th and 8th.Trading options on Deere on a Friday which expire that day hoping to catch a directional move is tricky business for a variety of reasons. In the very first hour of trading on both of these days the "bids and asks" are often to far apart to even attempt to buy into. There are times however with two days to go until expiracy when it gets a touch easlier to play. Look at what happened for example during the trading session on Thursday April 7th. Let's start with a five day chart. Do you see the dip and rebound on the morning April 7th? A full recovery from a morning like that doesn't happen very often.
What's next? Well here is a closer look at it's one day chart on a Thursday as of 12:22 p.m.. The screen shows a low on the day of $5.37 on the 400 series of Calls and then a rebound to a bid/ask of $10:70 - $13:65. Also notice the super low number of Call options traded. What a rebound! All of this happened before noon. It was playable on its rebound if you were focused and the ride back up was sweet.
So, what's next ?
Now here is the closing recap of the day on the 400 series of Calls. Notice only 26 contracts traded on it and an open interest of only 36 contracts. That's nothing. I often wonder why there are not tens of thousands of day traders dialed into these kind of moves. It is easlier however to play options on stocks like Ford where you can purchase options costing forty or fifty dollars each that are equally as interesting to track.I get that.
Now for day two of this action which takes us to Friday April 8th. Lets start with a look at what's happening with the D.J.I. at 10:08 a.m. It's still to early into the trading session to tell what is going to happen.
So now what? Would it be foolish to try and play it on the upside? It's actually the uncertainty of which way the market is going to move which makes the exercise a game of cat and mouse. It can be rewarding when you can catch the house offside. Yet once again it takes money to play in this game and if you find yourself on the wrong side of the action you lose.
** Look at the bid and ask on the 410 Calls at 10:04 a.m.. Why not split the difference on the "bid-and-ask" and get in around $2.25? Look now at how these Call options were trading at at 11:00 a.m.
That's quite a jump. Look now another time at how the markets ended up closing the day and look at where this series of Call options closed out at.
What a sweet ride one day ride. Here is how the markets closed out the day.
** Scroll up to the top left corner and press the little icon button to read my previous blog.

Comments

Post a Comment

Popular posts from this blog

I Wonder How The Back Office Is Going To Handle My Complaint

Image
The blog is about dealing with the back office of the brokerage company I trade with. This story happened today. Todays trading session has closed and I just made a telephone call to them just after the market closed to voice a complaint over how I feel I got short changed. Here are my background notes. 1) It involves trading the 370 Boeing Puts that expire at the end of this week. I bought in at 10:08:34 a.m. and sold out at 2:59:38 p.m. I was stuck in this position longer than I had hoped. I got lucky and did O.K., however that is not the point. 2) Here are my two "in-and-out" tickets. Two contracts in at 10:08 a.m. at $163.00 each and two contracts out then "at-market" for $365.00 each at 2:59.38 p.m. Now here is Boeing's one day chart. It dropped precipitously from 2:59:00 p.m.to 3:00:p.m. I just happened to be watching it at the exact time of the crash. That's when news came out that the "FAA opens Now a Boeing Inquiry over 787 inspections"
Read more

Boeing Down $20.00 or 8.03% On A Monday Morning

Image
Don't buy in, it's going to be a struggle.There is going to be too much guessing in-the-air in the near term. What happened? A door hinge problem or something. I am suprised with the millions of miles their planes fly filled with with all kinds of heavy things they don't loose wheels, wings and windshields. $400.00 dollars will now buy you a option contract on a 230 Call which will expire this Friday. That means the stock will have to rebound $5.00 just to get your money back. It might however there is nothing tangable to say it will. I don't like those kind of trades. So many pundents will now be commenting on what has now happened until we are tired of hearing about it. Let's just watch the action and see what happens. Now here is what happened on the next day. Can you see how these options have now dropped half price? That's what I wanted to avoid. Now is it time to try and rethink this position? If your still thinking about the upside it's still a high
Read more

Disney Had A Good Week, Fisker Not So Much . Lion Electric and Taiga

Image
First, it's one week chart. Here is one of the reasons why it is up. India is a marketplace with 750 million potential viewers! I have talked about Disney in some of my most recent blogs. Short term Call options on it did well this week as they did two weeks ago. So one question is - "How can you anticipate action like this?" Well it helps when the stock is in a general uptread. Here is it's three month chart. India is not the easiest country in the world to do business with. Starbucks went there in 2012 and now over ten years later it has only 390 stores. Ford pulled out in 2021 after starting to build cars there in 1926. The number of Domino Pizza stores is growing. I admit that this isn't an exhaustive analysis but my point is we should not expect this Disney news to rocket the stock to the moon. It did however create a profitable trading experience for option traders for a couple of days. Buying in on news as it is being disseminating is often a recipe fo
Read more