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Looking For Options That Can Have Big Moves On A Near Regular Basis. This Might Help.

Since the start of the year I have done 9 blogs on Tesla, 8 blogs on Caterpillar, 6 blogs on Eli Lilly, 5 blogs on Exxon and less on others. Guess which stock fascinates me the most for option trading? The answer is Exxon and I want to share with you one of the most dramatic one day option price swings I have witnessed this year. It affected as you might guess "last-day-to-expiring options'. It happened yesterday on February 20th which was a Friday and it happened with it's one day Put options. What do I know about the world energy situation and the complexities of oil tankers circling the world? Not much. I do have two good friends in the oil business who don't know each other but they both say the same thing. They don't talk about business that much but say things are good when the price of oil is down and say things are bad when the price of oil is up. They both seem to work like six months a year overseas and they both are avid soccer fans. They bet on soccer ...
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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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