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Why Not To Buy Not Rivian Calls With Two Days to Go?

It's obvious right? If you mess up and the stock opens the wrong way you only have one day for a rebound. Why put yourself in that position? Others might be in the camp of saying why not go for a fifty percent rebound on Thurday's morning opening. The stock sold of on Wednesday on very little volume. A morning pop is possible. The stock has being strong as of late. Here is it's five day chart. Now this, the seventeen series of Calls that expires in two days. They do look cheap after hitting a high of $1.55 on the day. If we look at a 30 day chart we will see that the stock is still in an uptrend. Why not look at the Call options one and two weeks out? Here are the seventeen series of Calls one and two weeks out They would be much safer to play and I will check in on these ones at a later date. So what happened on the Thursday opening? Let's switch gears for a moment and look at how Roku, a much higher priced stock opened and look at how their Call options moved.

Why Not To Buy Not Rivian Calls With Two Days to Go?

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It's obvious right? If you mess up and the stock opens the wrong way you only have one day for a rebound. Why put yourself in that position? Others might be in the camp of saying why not go for a fifty percent rebound on Thurday's morning opening. The stock sold of on Wednesday on very little volume. A morning pop is possible. The stock has being strong as of late. Here is it's five day chart. Now this, the seventeen series of Calls that expires in two days. They do look cheap after hitting a high of $1.55 on the day. If we look at a 30 day chart we will see that the stock is still in an uptrend. Why not look at the Call options one and two weeks out? Here are the seventeen series of Calls one and two weeks out They would be much safer to play and I will check in on these ones at a later date. So what happened on the Thursday opening? Let's switch gears for a moment and look at how Roku, a much higher priced stock opened and look at how their Call options moved.

Caterpillar. It's Biggest Jump In One Day This Year

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First, here is what the markets did today. Now this.Look at the high and low on these options today. All Call option holders were rewarded beyond belief. These are the moves option players dream of. It's instituational money flexing their muscle. This also. This too. Now what? You can't fight it and you can't buy in. Deere also is having a nice five day run. It's not that anything special is happening with these two companies. Eight days ago in a blog I gave the example of how I bought a "330" series of Caterpillar Calls for two hundred and fifty five dollars. Had I bought the 330 series of Calls at that time with one more week of trading life in them they would have cost about $450.00 dollars. Today they would be worth over $3,200.00. This is not rocket scientist stuff. It is just something that has happened.

Kicking the Can Looking at New Situations.

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An observation. Playing stocks in the under five dollar range is ok if you have time to wait. When it comes to playing options on them you should look to take a two-to-four months out stance. Few option traders play options on stocks in this price range. I do and in these kind of markets as of late the two-to-four month period of time can be shortened up a little. What's sometimes is usefull is to watch three or four stocks in the same sector concurrently to spot a trend. Now look at these charts. They are all in different industries. Now here is a chart of a stock that was $5.00 like a week ago. What happened and what do they do? They make batteries for Electric vehicles and they just made a deal with V.W. Remember a few weeks back V.W made a deal with Rivean and their stock is jumping up. Now here is a stock making battery-powered passenger aircrafts and just recorded an extremely long ride in the sky. Here is yet another one that is different. "uniQure". It's in

July Movement - One Week Action - Catching One Of These Moves And Staying With It

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Quickly check out these six different five day charts amd look for a common theme. Talk about a game of snakes and ladders! Was there a theme to the price movements of most of these stocks? Yes, with most of these stocks, the directional moves that happened on Thursday continued on over into Friday. Looking for one day reversals on stocks on Thurday afternoons and also going into Friday would have being a mistake. We are enjoying strong markets and this is the outcome of strong markets.These are not normal times.

Ford And A Crazy Week.

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Ford appears to be working on it's excess inventory problem. The stock surged this week. It helped the Barron's last weekend came out with an article entitled "Ford Is About To Make a Comeback. Hop Along For the Ride". Now look at how one of it's option series traded on the day. This move was a once in a year event. Many people do not like the stock Ford because historically it has being stuck in the mud for a long time. That plus stocks in this price range can be boring to watch. To be continued.

Caterpillar - Going Back to This Website's Roots.

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Look at Caterpillar's five day chart. It has nice spikes. Now it's one day chart. Now check for news. Well its not brand new but it is news. Nothing is gauranteed from looking at the five day chart. It closed strong. It might rally on the opening. No it didn't.! Here is how it is trading at 11:00 a.m. the following day. Down like $2.65 in morning trading. Now Wednesday morning.Down again. There was no news or no reason for this drop. It is a Wednesday morning. Look at the lack of interest in playing these Calls. Wednesday's are the one day of the week for market reversals. We are still a tad to far away to introduce the concept of how the stock will react to the release of quarterly earning reports. That doesn't happen until August 6th. The low volume of trading is not a particularly attractive feature to option traders. These 325 Calls are $1.29 cents "out-of-the-money". Any kind of a two or three dollar rebound would have a positive effect on the