What To Focus On - Part Two

My blog of November 27th was entitled "What to Focus On". Please read it. This week we are feeling a bit of a hangover. Last's weeks triple witching event is over. Stocks that were forced to contract in price to sqeeze out spectatate positions on them are now free to resume there old trading patterns. This Monday morning at 10:20 a.m. the Djia is up 301 points. There are also losers. So now what? Mark on your calendar exactly three months down the road how the markets traded on the first morning after one of these triple witching events and use this same logic to catch the upside on the next "hangeover" day like this. How do you pick the winners? Find a few stocks that have enjoyed a recent upswing and play them to pop on the first trading session after one of these events. This blog is just an observation.

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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