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Living on Kraft Dinner?

What does the word disconnect mean? As a verb it means "to sever or interrupt the connection of or between; detach". Option trading - one day options - is a disconnect from the world. What happens to slightly "out-of-the-money" Call options on Costco when the stock shoot up thirty dollars on the day? I will show you what happened on Friday to Costco Calls and the options on a few other stocks I frequently watch. What a disconnect from the real world. But before that a look at how the indexes traded. 1) Costco. It's five day chart and a look at how three of it's option series moved upwards in one day. You may not know how to read these printouts but try to read the highs and lows on these option pricings. One printout shows an "at-the-money" option which means you are buying a contract on the stock, good for one day only at a locked in price equal to (or very close to) what the stock is currently trading at. The other two contracts shown are ...
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The QQQ's Again

Back on July 26th I wrote a blog on trading the QQQ's. There is nothing magical about trading them, you just type in QQQ and follow the promps like any other stock. It's options on a basket of stocks. Stocks like Apple and the like. Pick whatever the day you want your series to expire. I like buying a few days time. Sometimes the markets lose their strength around noon on Fridays. It happened today. Here is it's five day chart and you can see the market selling off on Friday afternoon.
So here is the trade I made today.
I was in this position for 2.50 hours. You can see I bought an Aug 8th series so that would have given me until Tuesday. I got in at 11:53 a.m. It was an easy chart to play on the downside. Now I want to point out how this is a trading vehicle many traders recognize. Look at the closing summary of this series of Puts. There is something about it which stands out.
Notice the open interest of 1,771 and the trading volume on the day of 31,765. These are hot potatoes and taking a profit on a Friday afternoon is always a logical thing to do.

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