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Look At How Eli Lilly Tanked On The Opening

Here is it's chart. Can you see how much it dropped? Here is what one series of Calls and Puts did. First the Calls. Notice the light trading. Now the Puts. The Puts on the opening never traded at lower prices than this one lonely trade. The Bids and Asks would have dropped after this trade happened however there were no takers, partly because there was a built in expectation that the stock might rebound upwards again. Now let's push forward. Here is what it's five day chart looked like at the close of the day. So the chart looks like a mess with a step down formation on each of the last two openings. From past experiences I think that kind of a chart experience is a kiss of death on tomorrws opening. i expect it to open lower again and what happens after than remains unclear. It is going to take some good news to prompt it back upwards again. Here is how this one series closed the day. Once again, I would expect it to have another drop on the opening. I wouldn't b...
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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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