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Walmart And Costco

It's Thursday morning on January 8th. Walmart opened down. But look at how Costco opened up. This time I am showing it's five day chart. A first, no one really new why but then news like below surfaced. I was also searching for the news as I knew something had to be up. At one point in the morning Costco was up over $40.00. So Walmart is dropping and Costco is really shooting up. At some point Walmart has to turn around to catch some of this positive spinoff. Look at how the 100 series of Call options on Walmart shifted gears at 10:00 a.m.. Do these two stocks always trade in harmony with each other? Obviously not but there comes a time when some sort of a cause-and- effect becomes apparent. At exactly 10:00 a.m. this morning there was a realization that Walmart had to change it's direction to stay in tune with what it's big brother Costco was doing. At that time the 110 series of Calls which would be expiring the next day traded down to $90.00 per contract. Now...
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Ford Earnings - This Game Repeats Itself Four Times A Year

They should be up right? Supply issues are getting better and their electric trucks are coming. Ford released their earning report yesterday after the close and they were good.
A 20% increase is a decent increase. The stock should rally on that news, right? But wait. Remember in a blog a few days ago how Caterpillar tanked on the morning after a great earnings release? To refresh your memory here is what that chart looked like.
. The Ford stock trades in an interesting price range. Price swings of fifty cents on a twelve dollar stock can send option prices into a tisy. So here is what happened. Remember earnings came out after the closing bell yesterday on May 2nd.
The stock surged Monday morning up to $12.25 and that was the time to be selling out of the Calls bought on the previous Friday. Now let me digress for a moment. G.M. had an earnings release on April 25th and their profit were up substantially. This helps support the thesis that the automobile industry is on a month to month rebound. Buying Ford Calls last Friday would have being a smart calcuated risk. Look at the chart once again. Do you notice a surge in the last few minutes of trade of share buying in Ford at the close yesterday just before the earnings came out? New players were coming to the party hoping for a positive reaction to the release of this news. Here is how they made out. The stock did pop on the opening. Here is how the stock traded in the first twenty minutes of trading. Profits in the Calls happened.
One closing note. Look at this chart on Ford a few weeks back.
Playing options on Ford isn't always a walk in the park.

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