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Costco Options With Two Days To Go. Something To Consider , As Strange As It Might Sound

First, Costco is down $44.79 over the last ten trading days. The company sells food and everyone needs to eat. The chart looks like it might now want to rebound. Down $44.79, it's crazy that it could sell off that much in such a relatively short period of time. What about other stocks in this price range like Netflix? Well the Netflix stock is priced at even a higher level. It's at $1,257.00 today and yesterday afternoon it was at $1,213.00. Yes, today it was up $31.30!. My point is high priced stocks can make big moves and that's what makes Call and Put options on stocks like this so potentially rewarding. Most people would never consider trading in Costco options. I get that. More on that later. Now back to Costco doing so poorly as of late. It's now Thursday morning before the markets are open and here is a look at it's "at-money" Calls and Puts. Notice the light volume of the "open interest'. The two numbers reported here are 480 and 358. Whe...
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How Exxon Closed The Door On Option Traders Today

With Exxon we are dealing with a well oiled, well orchestrated machine. Every drop of oil and every trading derivative monitoring the flow of money surrounding oil is tightly scrutinized. Don't try to trade options on Exxon on Fridays that expire that very same day. You will get shut down. Here is a case in point. But wait. I take it all back. None of that is true at all. Look at this one printout which tells us so much.
At 12:08 p.m. here are the Exxon 104 Calls that expire for retail investors at 3:00 p.m. Look at how the contracts on the opening traded for under $.05 cents. It's noon and look at the profits which could have being made! A move of $.03 to $.37. Now here is the chart showing how Exxon traded on the day.
Now look at what the 104 Puts were trading at at 12:08 p.m.
Now this. Now it is time to change the title of this blog to How Exxon Didn't Close The Door On Option Traders Today. In fact, they left it wide open. Look at how Exxon dropped from 1:00 p.m. to 2:30 p.m. The 104 Puts that were trading for like $.25 cents at noon would have increased in price four fold in two hours. Here once again is a chart showing what Exxon slumped down to at 2:00 p.m.
It's easy to write blogs about things like this. The reality is that these kinds of trades are difficult to execute. I am just trying to open up your minds to the possibilities of what is out there. Come back soon and read more.  Let's jump ahead one week. It is now Thursday December 7th. Look at how it is down on the week.


Let's watch the action. These printouts are as of  11:50 a.m.

Let's now see what has happened at the end of the day.



Now here is it's five day chart.

Time now is working against the 100 series of Calls. Yet then again, it looks like it could bounce on the opening.   Here is the day ( a Friday ) action, well only the first 65 minutes of trading. Exxon is up $1.16. Here is a  look  the 100 series of Calls. Yes they are struggling but the Exxon 99 series of Calls had a nice bounce. Yes you can play short term Call options on this stock with only one day to go.


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