The Temptation of Buying A One Day Call On Thursday Afternoon.

It's usually better to wait until Friday morning and then deciding which way the markets might go. They can however on Thursday afternoon be tempting. Thursday was a trick with Boeing only up $.02 cents on the day. Here is it's one day chart. Playing it from (9:30 a.m. until 11:00 a.m.) was the way to go. On Wednesday we referenced Boeing looking like it's old self again. Now look at this. Focus on the chart from 1:00 p.m. unti 2:30 p.m. That period of time could have got Call option players excited. Experience also tells us that the 2:30 p.m. - 4:00 p.m. period of time is one of most dangerous times of the week to be looking at Call options that expire the next day. Now here is it's full one day chart. From 2:30 p.m. until 4:00 p.m. it really did nothing, with no indication of would happen on the following morning. Do your own homework to see if you concur with this logic. Now Friday morning and the one day options that expire at 3:00 p.m. this afternoon. Only 355

Roku. Please Read This Even If You Don't Recognize This Name

It's earning report came out and it fell. Look at this.
Now this report. The stock dropped as revenues went up. Go figure.
How did the Put options do?
These are the 90 series of Puts, the series most traders would be attracted to if they were considering playing the downside for a one day trade. They closed the previous day, the day before the release of this news for $5.80. "Netflix" is another stock also in the same space and it's stock also gets whiplashed around like this on it's earning reports. See it's one year chart. The stock has doubled in the last year and is widely followed by option players.
All of these companies in this space fight amongst each other for paid monthly subscriptions. Whoever has the best platform of the day will steal market share away from their competition while at the same time analyst weigh in on their thoughts on how the industry in it's entirety is evolving. "Disney" and "Lions Gate" are two other well known players in this space. "Lion Gate" just had a lousy earning report. My thoughts on all of this. 1) "Netflix" is definitely a stock to watch/play on it's earning releases. 2) It's easy to be an armchair player making "I told you so" comments on "just what is happening" situations. Having said this I want to show you a one year chart on "Roku".
Why am I showing this? Well if "Roku" was going to fall for whatever reason it could "freefall" down to somewhere just below the sixty dollar price range. The potential for a "freefall" thanks to known chart formations are something else option players should factor in when making buying decisions. Now let's look at the "open interest" numbers in next weeks Calls and Puts. These are the series of Calls and Puts closest to where the "Roku" is currently trading. There is no interest in them. That's kind of strange. Traders are waiting to see which way things will go. My last blog on "Deere" also showed the same thing. Most option players are afraid to jump in on rebounds to quickly. I get .
One last insight. Two random printouts on two different longer term "Roku"Call option positions. Two of many option series. This really is where the action is.
Option traders are not afraid to hold these new positions! Do you understand why? These are longer term bets on things turning around. If you new to all this just keep reading. I am not a world's expert on any of this. I am only trying to share my observations as to what it happening. The action on the following open. (Monday Feb 19th was a holiday) so on the Tuesday moring in the first fory five minutes of trading.
Let's now look at the June 21th Calls. Let's see how much it has dropped further down. That might be a good entry point.
They are $6.50 down from$ 9.50 on The Friday close. Here now is it's five day chart.
. To be continued. A March 17th update, one month later and the sames series of Calls.
June is still a long time away.


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