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Costco. It's Short Term Options

 Options on stocks in the $1,000  range often move  50%  or more in only a matter of  minutes on the opening on Wednesday and Thursday's . The trick is to  anticipate correctly which way the markets are going to move. That's a fools game you might say? Yes and no. It may not be a game you ever play but it might be something to consider to put in your bag of tricks when you are on a role. One thousand dollar stocks sometimes move five, ten or fifteen dollars on the day. If you have profits it's best to take them quickly. Costco is a prime example of that. Let's look at this mornings action. First it's five day and one day charts. Tuesday's trading was kind of choppy. Might it drop on the opening tomorrow? Here is a look at where the 1,035 series of Puts closed that expire this Friday. They closed at $8.50. It looks like Costco cycled up about five times yesterday. Given a weak market opening doesn't it stand to reason a three or four or five dollar will be i...
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Rivian

What does it mean when someone dumps 875,000 shares of Rivian at 3:59:59 p.m. at $13:45? That's a twelve million dollar ticket.That happened yesterday after the stock sputtered around all day on low volumes of trading. (It usually trades about 26 million shares a day so the 875,000 share ticket may not be all that unusual).
That was calculated timing, perhaps computer programmed selling. Would that send off shock waves on it's following mornings trading. Not really.
Look at what happened in the first minute of the opening trading the next day. A block of 275,017 shares traded at 9:30:59 a.m. at $13:71. What does this point out? First, it might point out how computerized trading triggers trades to happen in the last second of the first minute of trading in any new session. How you can profit from that observation is something you will have to figure out on your own. It also points out how infinitesimally inconsequential all of the retail option trading is. Your purchase of five Calls on Boeing that expire this Friday is as significant as a fly landing on the back of a horse. It also points out the efficiencies of the markets. So the next question is how can the little guys make money playing options when the system with it's computerized buy and sell programs is as tight as it is? In some ways retail option traders should find some assurances in the markets having this much depth. For example, from my experience the market makers can not mess around with buy and sell orders going in "at market" at 3:59:57 or 3:59:58 p.m. That's a good thing. Happy trading.

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