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What Happens When You Get Four Stocks All In The Same Sector Going Up In One Day On A Monday?

First of all it usually means something good is going to happen in the sector. It doesn't really matter what it is or why. This time it's in a sector we can call "used vehicle car sales". Some option traders trade exclusively in this sector as you sometimes see blocks of 20, 25 or 50 contracts trade at one time. Well, not so much as of late. It's big "retail-money" or trades made by wealthy individuals. Why spend millions of dollars building up a car dealership empire when you can follow and profit from what is happening in the industry just playing stocks and options on it in the right direction? That plus the advantage being able to take holidays when ever you want. Here they are. 1) NOW HERE IS A CHART OF CARVANNA. I have done recent blogs on this one. Here is it's five day chart. Is everyone hoping for interest rates cuts? (Jerome-Powell-Jackson-Hole Annual Summit) to come later this week, just another speech by some old man). If rate cuts star...
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Boeing - Towards Understanding How One Must Learn To Pick Your Battles.

A multitude of factors have kept Boeing down since my last blog about it in April. What happened this morning was a touch unusual. First the five-day and one-day chart.
Now this. Can you see the morning jump at 11:00 a.m.?
The top reason for looking for opportunities like this is that the weekends often wash away negative sentiments if only for a brief period. These are "out-of-the-money" Calls with 4.5 days of trading life in them. If they had only one or two days of trading life in them then the risk of trading them would be too great. Note how the volume of contracts traded greatly exceeded the open interest. Traders got in and out. Traders recognized a break-out pattern. What's going to happen next is anyone's guess. This is short-term options trading. Stocks in the 200.00 dollar price range offer more opportunities like this than stocks trading under $100.00. That's just the way it is. Let's now look at this morning's action in Fisker. It's a totally different option trading experience.
What happened to cause this jump?
Yes, their Call options popped. Two different types of trades, two different situations. How would anyone have any advance notice the Fisker news was about to happen? Would you want to be sitting in Fisker Calls when the stock has been disappointing for such a long time? Not really. In option trading, you have to learn how to pick your battles.

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