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Netflix - One Day vs Next Weeks Calls.

It's Thursday and the DJIA is up. Here is how Netflix is doing. Now this. Remember that this stock recently did a 10-1 forward stock split. Things don't look good, why isn't the stock sharing in today's upward glee? In situations like this it's best just to stay away. Look at how cheap the Call options look that expire tomorrow. They look tempting however next weeks Call options offer so much more security. Now this at 12:38 p.m. The markets continue to go up. Netflix continues to sell off. Now tomorrows and next week's Calls just after noon. The ones that will take the most heat for the rest of the day will be the short term options. There are decent volumes in both of these series of options. An end of the day report. First the options that expire tomorrow. It would be silly to be in this series of Calls. Now next weeks Calls. Now it's five day chart. One week options are a long way away. Stocks with a bias to the downside are difficult to t...
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Toyota

Very few option contracts trade on Toyota. I have wondered why and offer one potential explanation. It's listed on multiple exchanges around the world and "option makers" in North America are basically just following the action. If the markets open stronger in North America that means Toyota traded stronger overnight on markets overseas. Secondly, the Calls and Puts trade in incriments of five dollars.There are for example 135 Calls, 140 Calls, 145 Calls. Having a five dollar spread wipes out the incentive try to daytrade option series which are soon to expire. If the stock moves from 142 to 143 the "bids and asks" on a 140 series of Calls might hardly change. It's not like trading the stock like Boeing where you can get in and out with option series set up in increments of $2.50 . Here is it's one month charts. The company now has a new C.E.O who is getting criticized for not moving to go electric quickly enough.
What I am now about to show you might discredit some of my above points. It's a five day chart on Toyota and look how all the action seems to happen on the opening. Why? It's the effect of overnight trading on other markets. Our North American trading follows Toyota's overseas market trading.
Now back to my point of how contracts trade. A volume of three and twelve contracts in the 140 Calls and Puts series that expire soon. Look at how wide apart the "bids and asks" are and how low the outstanding number of open contracts are. It's crazy.
Toyota is a great company. It's just not one that attracts option players.

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