Featured

Caterpillar Up Almost Eight Dollars in The First Hour Of Trading

What's the DJIA doing? How is the chart on Caterpillar? Isn't it true most of us would just stay away and forget thinking about purchasing Puts. Here now are the "near-to-the-money" Puts. Now the further "out-of-the-money" Puts that will only start to reacte with a sell-off of three or four dollars. The volume at this point in time is greater in the "near-to-the-money" Puts however they are both scary from the point of view that there is nothing on the near term horizon to make them change the coarse of their direction they are now on. Early buyers in this morning were hoping for an early morning market reversal. It didn't happen. Now this, about 50 minutes later. The Puts have become more affordable. Caterpillar at 11:35 a.m. keeps inching up. Now a 11:38 a.m. look at the 350 and 345 series of Caterpillar Puts. I like the 345 Puts now in the one dollar range. Here is it's five day cart. I think a Tuesday afternoon dip is possible. Y...
Post a Comment

What Do You Do On A Strong Opening?

There is not much you can do because you have missed the boat. Look at these charts this morning.
What an opening. Caterpillar went on to close the day out up $17.20.
A crazy opening. Now look at this. A Costo 640 Put at 9:44 a.m.
Now look at how this Put closed the day.
When you see a stock struggling in a market on fire to the upside it means it could be a play. *** Here is Costco on the opening the following day which is a friday. In these kind of markets you have to take profits when they are there.

Comments

Post a Comment

Popular posts from this blog

Living on Kraft Dinner?

Image
What does the word disconnect mean? As a verb it means "to sever or interrupt the connection of or between; detach". Option trading - one day options - is a disconnect from the world. What happens to slightly "out-of-the-money" Call options on Costco when the stock shoot up thirty dollars on the day? I will show you what happened on Friday to Costco Calls and the options on a few other stocks I frequently watch. What a disconnect from the real world. But before that a look at how the indexes traded. 1) Costco. It's five day chart and a look at how three of it's option series moved upwards in one day. You may not know how to read these printouts but try to read the highs and lows on these option pricings. One printout shows an "at-the-money" option which means you are buying a contract on the stock, good for one day only at a locked in price equal to (or very close to) what the stock is currently trading at. The other two contracts shown are ...
Read more

The Little Engine That Could

Image
Walmart again. It's all I seem to blog about. Here is it's five day chart. The stock keeps going up and the option series are set up in one dollar spreads. Even a fifty cent move on the stock moves the needle on these Calls. Look at how this series of Calls was trading yesterday at 3:00 p.m.. Now here is this same series of Calls just before noon today. Thirty days of upward action like this punctuated by the off day of decline. Now notice the higher volume of trading in the series of Calls with the higher striking price. These are the ones's with more leverage. At the same time look at the five day chart on Costco. The two stocks sometimes trade in tandem. Humpty dumpty sat on a wall .... a had a great fall. Someday soon a fall might happen but what a great ride it has been.
Read more

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

Image
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...
Read more