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One Week Options. Are They A Good Bet In Times like This?

Look at how these these four stocks traded last week. 1) What a great week for one week Call option players on Boeing even though the stock ended up down .83 cents on the week. 2) Roku. Roku hasn't yet recovered from a not so good quarterly report. Roku lost $1.13 on the week. (Netflix in somewhat the same space was up $35.780.) 3) Disney suprised. I talked about that in a recent blog. 4) Now Caterpillar. It was up $12.83 Now The D.J.I. was down .11% or basically flat. In good times Call options can be your best friend. To be continued.

A Fireside Chat - One Year Options and Thirty Day Options. Which is Better?

Some say to think small, not big. Trying to play Disney options is thinking big. It is a stock slighty 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-mas why not think about going short on Costco (buying Puts) to catch the January blues? Yet then again with interest rates potentially going down and fresh money coming into the market why are we thinking of Puts? Look at this article.
Look also at how this stock is opening as of late. Why try and fight a strong stock? I have never witnessed a five day trading pattern like this.
Let's look at a thirty day chart.
At some point in time when people get back to work this party has to come to an end. So the question now is are 30 day Puts better than 90 day Calls? I think so however in option trading it's best to sit on the sidelines when you think the markets are going in the wrong direction. This week the markets are in a holiday mode but next week could be a different story. Costco Puts? Why not? Who can afford to buy strawberries? **** A next week look at the same situation. Costco is down a chunk. The puts were where the action was at.

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