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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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The Concept of Buying Options on Stocks in the Two and Three Dollar Range. Polestar and GoPro

It's all about leverage and successfully predicting which way a stock is going to move. Guess right and you will win big. Yet wait, why not just purchase the stock and put it away and hope that it's going to go up? That makes more sense. Stocks in the two and three dollar price range can be extremely difficult to play, let alone playing options on them. Let's look at two of these stocks. First Polestar. It has an earnings report call coming out later this week. Take some time and listen to it..
ANOTHER STOCK IN THE LOW PRICE RANGE IS GO PRO. It has struggled over the years. There are reasons to think that the company could be changing it's business model.
Now it's chart.
Now it's one year out Calls with a three dollar striking price.
Brian McGee seems excited. Future income streams is something that adds value to a cause. One year is a long time out in the future. Yet then again if you like stocks in this price range just buy the stock and not it's options. Turnarounds sometimes take years to happen. *A Nov 16th update. (eleven days later).
Both the stock and the Call options have jumped. The three series of Calls have done wonderfully well. Polestar in contrast continues to go sideways.

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