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Showing posts from December, 2023

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Options On A Six Dollar Stock That Can Surprise. A Five Day Journey Of Adventure ( Big Bear AI)

I have writen a few checky blogs recently about some relatively obsure company called Big Bear Ai. It does however sometimes make the list of the top most actively traded stock by share volume on the NYSE index. That's how I initially discovered it in the first place. It's a hot stock now but it six months time it may be long forgotten. Here is it's year to date chart. To today is a Monday and here is what it's chart looked like at one point last week when I said it could be a good time to catch the upside. As you can see in one of my last blogs the options on it more than doubled in price on the following day. This time the chart shows the same end of week bounce and a slight sell off this Monday morning. Could this be a good entry point? Monday morning sell-offs may linger, longer than one would think. Now this two hours later. Little has changed. They closed the day at $.31. Playing options on six dollar stocks is not always a walk in the park. Now it's Tues...

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...