Featured

This One Is Too Nervous To Watch. Pfizer

This is a short blog full of twists. Try to get through it. First a five day chart of Pfizer. chart. In the past week it was up $1.05 and it was the 7th most activity traded stock on the NYSE most active list. It's in a breakout mode. Look at how it traded over the last three years. This breakout mode might last a few days, weeks or months. This stock has a history of moving somewhat slower than most stocks. A second quarter earnings report comes out July 30th. If it's good that could add a touch to the stock's price. Now this. As a general rule stocks and options on stocks in this particular price range are difficult to play and in this case everyone is following the same story. Fred down the street and John around the corner and Mark across town are all dialed into the same commentary. There is nothing that really gives you an edge when it comes to playing it. That's the problem. Here now is a look at the Pfizer "next-week-out" $30.00 series of Call optio
Post a Comment

Could You Play Disney Calls Last Friday After The Stock Jumped, Hoping For Another Bounce On Friday Morning ?

Here is how Disney traded on Thursday. It has been a dog of a stock for years for a hundred different reasons. It also has a hundred different moving parts which when dissected could unleach value. It could be a $200.00 stock by this time next year. So after looking at this chart do you think and second wave of buying might be in the cards on it's Friday morning opening? Would buying Calls be wise, Calls that expire the very next day?
..................
Can you see how the $110 Calls closed at $1.21 on Thursday after a wild ride all that day. Notice the closing "open interest". It's less than ten percent of the volume of the daily trading volume. That tells us that most of the traders don't want to take the risk to be in the game. Would you expect a Friday morning pop and would the $110.00 series be the one's to play? Here is the answer. First the chart of Friday's trading.
Now here is what the $110.00 Calls did on the day.
If you think next weeks Calls are more promising here is how they closed out the day on Friday. It's something to think about. The 30 day out Calls or longer might be better.
Disney was up smartly on the week. Do your research as to why.** A late Monday morning update, Feb 12th. Would you have the guts to hold onto your Call option over the weekend hoping for a second way of buying power to come in?
The options more than doubled.

Comments

Post a Comment

Popular posts from this blog

I Wonder How The Back Office Is Going To Handle My Complaint

Image
The blog is about dealing with the back office of the brokerage company I trade with. This story happened today. Todays trading session has closed and I just made a telephone call to them just after the market closed to voice a complaint over how I feel I got short changed. Here are my background notes. 1) It involves trading the 370 Boeing Puts that expire at the end of this week. I bought in at 10:08:34 a.m. and sold out at 2:59:38 p.m. I was stuck in this position longer than I had hoped. I got lucky and did O.K., however that is not the point. 2) Here are my two "in-and-out" tickets. Two contracts in at 10:08 a.m. at $163.00 each and two contracts out then "at-market" for $365.00 each at 2:59.38 p.m. Now here is Boeing's one day chart. It dropped precipitously from 2:59:00 p.m.to 3:00:p.m. I just happened to be watching it at the exact time of the crash. That's when news came out that the "FAA opens Now a Boeing Inquiry over 787 inspections"
Read more

Boeing Down $20.00 or 8.03% On A Monday Morning

Image
Don't buy in, it's going to be a struggle.There is going to be too much guessing in-the-air in the near term. What happened? A door hinge problem or something. I am suprised with the millions of miles their planes fly filled with with all kinds of heavy things they don't loose wheels, wings and windshields. $400.00 dollars will now buy you a option contract on a 230 Call which will expire this Friday. That means the stock will have to rebound $5.00 just to get your money back. It might however there is nothing tangable to say it will. I don't like those kind of trades. So many pundents will now be commenting on what has now happened until we are tired of hearing about it. Let's just watch the action and see what happens. Now here is what happened on the next day. Can you see how these options have now dropped half price? That's what I wanted to avoid. Now is it time to try and rethink this position? If your still thinking about the upside it's still a high
Read more

Disney Had A Good Week, Fisker Not So Much . Lion Electric and Taiga

Image
First, it's one week chart. Here is one of the reasons why it is up. India is a marketplace with 750 million potential viewers! I have talked about Disney in some of my most recent blogs. Short term Call options on it did well this week as they did two weeks ago. So one question is - "How can you anticipate action like this?" Well it helps when the stock is in a general uptread. Here is it's three month chart. India is not the easiest country in the world to do business with. Starbucks went there in 2012 and now over ten years later it has only 390 stores. Ford pulled out in 2021 after starting to build cars there in 1926. The number of Domino Pizza stores is growing. I admit that this isn't an exhaustive analysis but my point is we should not expect this Disney news to rocket the stock to the moon. It did however create a profitable trading experience for option traders for a couple of days. Buying in on news as it is being disseminating is often a recipe fo
Read more