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Showing posts from December, 2023

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Looking For Something To Buy On A Tuesday Afternoon?

Trumph says the war is over but is it? Exxon sells off on that news. Does this make the Calls a good buying opportunity? It's 2:38 p.m.. The Calls shown below expire in two days. Moves downwards this much in a one day time period are somewhat rare. Let's see what happens. This leads us to a new topic. Overtrading. Avid daytraders can pick the days they like to trade the best. I like Fridays for it's one day options and for it's late in the day look at it's "next-week-out-options" which might at that point of the day be somewhat mispriced. Resets in pricings can sometimes happen over the weekend which become apparent in the first few hour or so of Monday morning trading. I also like Wednesday for mid week reversals. The biggest trap are Thursday options that expire the following day. These are the ones that seem to lose the "time value" aspect of the equation the most quickly. Finally Tuesday options that expire the next day, or two days away o...
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A Fireside Chat - One Year Options and Thirty Day Options. Which is Better?

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Some say to think small, not big. Trying to play Disney options is thinking big. It is a stock slightly out of favor. If we start with it's a three year chart, we will see it is down by about 50% over that period of time. Now it's one year chart. If the stock can break 110 in early 2024 the sky is the limit. It does have a lot of moving parts so anything could happen. Look at these Calls options one year out. One year in options buys a lot of time.They look reasonable. If the stock ever inched up to the $105.00 price level in the three or four months these options would jump up in price by about 50%. Even more if they had really good news. Yet it's the "what-if" aspect of the equation that castes such a trade in doubt. "What if" stories just don't cut it. There are to many variables in play. Then again, why are we even thinking of long-term Call options after a December's rally? Let's switch gears. If consumers are out spending for X-ma...
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