One Week Options. Are They A Good Bet In Times like This?

Look at how these these four stocks traded last week. 1) What a great week for one week Call option players on Boeing even though the stock ended up down .83 cents on the week. 2) Roku. Roku hasn't yet recovered from a not so good quarterly report. Roku lost $1.13 on the week. (Netflix in somewhat the same space was up $35.780.) 3) Disney suprised. I talked about that in a recent blog. 4) Now Caterpillar. It was up $12.83 Now The D.J.I. was down .11% or basically flat. In good times Call options can be your best friend. To be continued.

The Hurricane - An Avis Option Trade

Last week I did a blog about a little trade on I did on "Home Depot" hurricane news. A second tradable trade presented itself this morning that in hindsight was easy to predict. Last week we all witnessed the carange of cars and boats being destroyed by rising sea levels. Thousands of cars where destroyed. One of the things this means is that Florida instantly needs thousands of rental cars. That's good news for Avis, right? I would think so except for the fact that they too lost vehicles. Here is a look at how Avis traded last week up until Thursday morning. Avis is a company I have never traded before. With the high demand for used cars these days it is not a situation I feel comfortable trying to outguess. This stock made some nice moves upwards last week.
Today is Monday. Doesn't it stand to reason that over the weekend tens of millions of people got to watch news clips on t.v. of the damage incurred? The following chart shows the lift Avis got on the first few minutes of trading this morning. In hindsight we all should have bought Call options on Avis at 3:59:57 p.m. last Friday.
Also now shown is how Avis traded on the day last Friday. Do you see how late in the day profit takers caused the stock to take a slight dip just before the closing bell?
Ps. Here is something I did on Friday (the DJI sold off 500 points on the day) in anticipation of a Monday morning rally. I try not to hang onto positions for to long with short term options. I purchased at around 2 p.m. one contract at $154.00 on Caterpillar that expires this week.
I didn't stay in this position very long. I stayed in it for just less than ten minutes on the opening this morning. The reason I got out so quickly was that I also bought a Boeing Call near the close on Friday so I wanted to lock in as early as possible one profitable trade. Doing so would offer protection just in case the Boeing Call option position started to go south. I got out at $310.00 after buying in at $154.00.That's a double.


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