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.

Costco Again. Options On It Are A Game Only For The Pros / And A Second Look at Roku

Last week I did a blog on Costco. It had an earnings report come out last Friday and the stock dropped $60.03 dollars on the day. Was it easy to play the downside? No,as I pointed out the Puts were crazy expensive on the day before the crash. How expensive were they? Well if you check that blog you will see the 762.50 Puts closed that Thursday at $23.09 when the stock closed at 785.59. What does that mean? It means the stock would have to drop $34.47 in just one day just to break even. Who is going to wager good money on that kind of a bet? It wouldn't be a fun game to watch. So the bottom line is I think, that options on stocks in the $700 and $800 and $900 dollar range are just to expensive for the small fish to play. Small option players are better off fighting the Ford and Nio price range options or options on stocks in the price range that Boeing, Caterpillar, Disney, McDonald's, Telsa, Roku and Moderna command. Stocks also where there is a bit of a storyline of sorts to follow. Now this brings us back to the action in Costco today which is a Tuesday. Look at how Costco rebounded!
Something different is now unfolding. The stock is rebounded. Look at the pricings on these Calls today on a Tuesday. These option now expire in three days. Yes these Calls were a touch "out-of-the-money" but we all know how explosive to the upside this stock can be.
Now look at the one day chart. Can you see how the blast-off happened in the fist fifteen minutes of trading. Anyone following the opening markets would have watched it creeping up.
Let's now change our focus and look at Roku. Here is it's thirty day chart. Look at how different it is. I blogged recently about what happened to make it fall.
Look now at these two series of Calls with a $65.00 striking price. One is for a week Friday out and one buys you an extra week beyond that. What do I want you to observe? The open interest numbers versus the daily volumes of trading. The open interest numbers are consistently higher. Yes some traders are day trading them while other are more patience in their approach and holding them overnight. Yet a patience approach over the last few week has being a recipe for disaster. What's nice about these options is that they are affordable and do make decent price swings in this relatively range bound mode. They are something to consider. Roku is not going to go away as it has 80 million subscribers. Yes 80 million.
Just something to think about. Don't buy in on my advise. Just recognize that trading options on stocks that are range bound present their own set of challenges. To be continued.**** A next day 11:27 a.m. observation.
$175.00 to $231.00. These options are playable. Now a March 14th look.


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