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Why Retail Traders Don't Play Costco Earning Reports

Options on stocks priced in the $1,000 per share price range with two trading days of life left in them are bombs waiting to be exploded. That's why retail traders can't trade them. That plus they are expensive. Earnings are coming today after the closing bell. Here is how things are set up to go before Thurday's opening. First it's five day chart. Now it's 1,000 series of Calls and Puts. Notice the low volumes of trading and the low open interest numbers. ...................... Now look at this action. The Calls sank on the opening and the Puts charged upwards. Here first are how the Calls traded. T52_0ghVpwL62_KdBC8bkD8No0k7uYNehtOpIfeUuRjCiFG4gvPz8-IOqPdaHil- 754 contracts traded in the Calls. Now the Puts. Only 61 Put contracts traded on the day. Here is a more detailed look at the same thing. So the Puts that closed at $1,388.00 yesterday hit a high of $2,638.00 just after today's opening. Maybe it's the high cost of the options which are keeping ...
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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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