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Late To The Party Option Players - Disney

Can late to the party option traders make money? It's something to consider? These Call options expire this Friday. There was news on it before the opening today. The second chart below a few minutes later shows it hanging tough. At 10:01 a.m. we now checking out the Puts. The bid and ask on the Puts are very tight. That also makes us ask what happened to the Disney 101 Calls that we first looked at? Here is what the chart now looks like. More Call option players have jumped in to play the upside that the downside. Might one do a spread and try to play it both ways hoping for a breakout either way? That's an option to consider. Disney has being a dog of a stock now for a year so might some profit taking set in? How is Disney going to pay for another theme park? With that on their plates forget any share buy back programs. They are taking on new risks in a period of global uncertainity. Are late to the party option traders best just to stay away from this unexpected situ...
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Biogen - A Tough Cookie to Play

Drug stocks are difficult to play. One year ago to this date Biogen was trading at $292.20. Today its at $193.61. That's down almost $100.00 on the year.
Now look at it's three year chart.
Back on May 11th 2022 the stock dipped down to $191.07. So the question now is will that now be a support level? That could be something to watch. How do you play options on a stock which has dropped for a year or more? You can't really. The system, for lack of better words has a built in defense mechanism. Let me try to explain it this way. Yes I think a rebound might be imminent for technical reasons however there are barriers to entry. Look for example at how expensive the one month out Calls are.
A May Call contract (one month out) slightly above the current asking price is $8.00 a contract. When was the last time this stock ever went up $8.00 in one month? Well there was one $10.71 bounce between March 6th 2024 and March 12th 2024 so in theory anything could happen. Yet having said that, it's still a crazy price to pay and a risk much to high to take. Now let's look at these Call options that will expire in three days.
Note only 15 contracts traded on the day and an open interest of only 9 contracts. What's more, the spread between the bid and ask is high making it more difficult to trade. What this tells us is that traders don't see any value in trying to navigate in these waters during periods like this. It will be interesting to look back at this blog in one months time to see how this situation played itself out.* Here we are now in July, some three months out. So what happened?
The stock did find a support level. It's still to difficult to play. What is missing is that there are no spikes of upward volume coming into it. Without that happening this stock could dip further.

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