Featured

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.

Ford and The Call and Put Option Game On It Has Slightly Changed.

Look at this chart. Do you recognize something a little bit different in the striking prices? They have changed and here is proof.
Forget playing the 12, the 12.50, the 13 and the 13.50. Calls or Puts. Now they are all 11.85, 12.35, 12.85, 13.35 Calls or Puts. What is now different is that the striking prices have now shifted downwards by .15 cents or upwards by .35 cents depending on how you look at it. Does it make any difference to option players? Has it become slightly more challenging to do the math? Not really as everything functions just the same. Just learn to get use to it. That said, here is how the stock Ford is now trading in February. .
Now look at these same Call options on the morning of Tuesday February 22nd two trading days later.
The market tanked on Monday and the executives at Ford are making comments that are casting their operating realities in a bad light. Institutional investors have limited patience for these kinds of outbursts.
Then this.
Ford's public relations department needs to coach their management to button their lips. Here now is a printout of the same Call options we showed above two days later. They have tanked.
The bottom line is the playing Call and Put options on Ford can be a wild game when there are so many moving parts in play. Yet then again these price gyrations make for interesting trading opportunities. Don't be afraid to play them.* The longer term Call and Put options like the Ford 12 and 13 and 14 Calls remain "as is". It's only so far, the near term Call and Puts options that have the new striking prices.

Comments

Popular posts from this blog

Boeing Down $20.00 or 8.03% On A Monday Morning

The Three Amigos On A Friday

Fun With Charts - Deere and Two Days To Go.