Showing posts from March, 2024


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

Can you Fight The Upside on Tesla On A Wednesday Afternoon ? What About Thursday When Friday Is A Holiday ?

Fight the upside means play the downside. Why would you want to? Well to make money. At 12:47 p.m. on a Wednesday afternoon here is what it's one day chart looks like. Now of secondary importance is it's five day chart. The D.J.I. is now up 262 points. The big upwards action on it happened yesterday. Now what? Look at this. At this particular time this series of Puts gives you relatively good value if 1) you believe the upward move in the D.J.I. might start to level out or start to sell off on the day and 2) if you like the chart formation and once again think a pause in the upward rally is imminent. So do you think you can successfully play Tesla options? In this situation what do you think is going to happen next? Up or down? It's as straightforward a question as that. Forget all of your preconceived notions of what you think is happening in the car industry at the present time. Wednesdays are often days of reversals in the markets. The one hitch is that this Friday

Roku Again And Playing A Sideways Moving Stock

First its thirty day chart. It looks like it is sleeping. Now if we go back just a little bit further things seem to change. I have blogged about playing options on this stock in the recent past. Now todays action and a look at it's one day trading pattern. Can you see it selling off at the end of the day? Now look at this.The same chart except for it's last hour of trading. Look at how the 66 seies of Puts were trading at 2:57 p.m. Now look at how the Roku 66 Puts closed the day after hitting a high of $2.20 in this afternoon sell off.. That's how quickly option prices can change. These are early in the week options which are not as dangerous as one day or last day options. If you catch something like this only once or twice a week all would be good. **** Let's look forward to Monday morning April 8th before the markets open. Here is it's chart from the previous week. Now it's thirty day chart. One question we might want to ask is why are we even watch

Shifting Views on the Relevancy Of Option Trading.

An article entitled "This Option Craze Could Spell Market Trouble" by a fellow named Steven Sears in Barron's this month is of extreme interest to me. He starts with the sentence "The options market is in the throes of a speculative mania." He claims that the industry now characterizes options that expire in one week as being financial fentanyl. One of this sentences says - "The truncated expirations seem to mostly incite aggressive speculation as they reduce put and call prices into Wall Street's version of cheap scratch-off lottery tickets." Is he adverse to these types of trades? Well he side tracks this question by saying "The curent option trading mania is dominated by hot teck stocks like Nvidia, Tesla, Meta Platforms, Apple, Micosoft. Super Micro Computer, and Many of these stocks are so expensive that only weathy investors can afford to buy 100 shares - and even they might pause at paying top dollar for such steeply valued

A Canadian Company Up 68% In One Day

Canopy Growth. It's one year and one day chart. Now it's five day chart. What's going on? Well let's start with why it surged last August. So now what? Why did it pop this time? Well this time, like last time many of the stocks in the marijuanas space popped. Look at the last Fridays action in these other matijuana stocks. Here is the news this time. Many sources talk about it in different way. Now this. So this kind of paints the picture of what is happening. Canadian companies have kind of got the jump on growing techniques after burning through billions of dollars in startup capital. Now they are all of on a mission to expand their footprints overseas. Skeptics of the industry who have witnessed these surges in this group of stocks might now tout this as being a good time to sell. Afterall there are millions and millions of outstanding shares and the daily volumes traded are at time quite insignificant.These are difficult stocks to play and even more difficult

Roku. Call Options On It That Expire The Same Day

Friday morning at 10:12 a.m.. First a look at the stocks five day chart. Not much to look at right? It seems only to be going sideways. Now a look at the 63 series of Calls, the 64 series of Calls and the 65 series of Calls all of which expire at 4:00 p.m. today. The 65 Calls are a bit of a stretch.There is a with rule that states that all option traders holding options that expire that day have to be out of their positions by 3:00 p.m. and if not, the brokerage firm can and will liquidate your holdings "at market". Usually they will give you a telephone call you first. They have your number. They are polite. Sometimes you can push the limits on that rule and sneak in a touch more time by having a sell ticket in for an amount slightly above the current bid and ask. Why would someone be crazy enough you might ask to be sitting in one day options? One reason is that day traders could have bought in on the previous day's closing hoping for an early morning rally or early mo