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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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Nio And An Earnings Report

Todays action is that a quarterly report came out showing that their car production number were down for the quarter. I have talked about this company before. Back on June 13th I wrote about the stock jumping on the news that their prices were coming down. Last November 28th I wrote about production output increasing and I wrote about the company on March 11th, 2022, and Feb 27th, 2022 when it was trading at $20.94. Back in November 2020 it was trading for over $60.00. One car they race is the fastest electric car in the world. Here is how things looked this morning after this report.
More news.
So now what. It's one year chart.
Now this. Look at how it dropped on the opening.
Now this. Nio was down $1.16 nine minutes into the opening action.
So what make of all this. Production is off, the stock is now discounted, buy "Calls" like five months out for protection and try to get a quick rebound. Here is what happened.
In at $163 and out at $238. Nio is not going away and this morning's dip was an overeaction. Plays like this are more common than you might think.** Here is a look at it a few days later. Mathematically it's inprobable that the "open interest" number has remained unchanged.

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