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Showing posts from December, 2023

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Options On Stocks In The $4.00 Range "Big Bear a.i."

First a look at the one day chart on a company named Big Bear a.i.. The second chart just above is a five day chart so the jump I am talking about happened on the fourth day of this five day chart which was Tuesday. On Wednesday as you can see the stock slightly retreated. Next you can see how on Tuesday the four series of Calls went from $.04 to $.25. I have blogged about this company in the past. A few months ago this stock was on the most active list week-after-week. Here is it's "year-to-date" chart. This story keeps going. The stock ended having a lessor bounce on Thursday. It was an interesting bounce with a portion of it happened at exactly 2:00 p.m. and lasted for about an hour. Here is what the bounce looked like and this time we are looking at the 3.5 series of Calls which is a lower series of "in-the-money" Calls than we looked at two days ago. Slightly "in-the-money" Calls are the best options to use in situations like this. While al...

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...