Featured

Finding A Trade To Make On Thursdays. "Walmart"

I don't like Thursday afternoons in short term option trading. A lot of things seem to happen on Thursdays like government reports coming out. I don't buy in the final seconds of trading, Call options on Boeing, Caterpillar or Eli Lilly or hoping for a Friday morning bounce. The hope today is to do find something good to trade and walk away by early afternoon. Welcome to Walmart. Options on Walmart are tight. Other stocks like McDonalds have options which trade sloppily. Let me show you what I mean by this. Good luck trying to get a fair fill if you're buying or selling. Now the Walmart side of the story on how options trade on it. Can you see the tighter bid and ask and the higher volume of trading? Step back for a second and consider this. The stock is only up $.26 cents in the first 45 minutes of trading. What does that tell us? It's waiting to decide which way it wants to go. Now this. These Call options went on to move up to $1.71 just before noon. There was the...
Post a Comment

Roku Jumped in Anticipation Of A Good Earnings Report

Only to fall again. Look at this five and thirty day chart.
...................................................
Yet thats only part of the story. Look at it's year to date chart.
How bad was their earnings report?
Do you think their pain and suffering is all now behind them? The stock is down 38% on the year. All I know is that they still seem to be making a pile of money. On a different note and in a different industry a stock named "First Solar" was stuck in neutral a few months back because interest rates where to seemingly high and companies in that industry were cutting back on the size and number of projects they were working on. Since that time and for whatever reason the stock in on fire.
Both Boeing and Caterpillar also crashed last week on earning report releases. There seemed to be a hint of danger present in both companies releases. It's almost as if there was a domino effect. Next question? Why is Netflix gettng beat up? Look at it's chart.
Is it partly because other companies like Disney are beefing up their efforts to become a bigger player in this space. Yet then again, the more things change the more they remain the same. A few years back all eyes were focussed on Netflix tweeking their business model on advertising policies and on the issue of their subscribers sharing their passcodes. Those issues are now largely history. We must not forget that Roku has 80 million subcribers. There is still plenty of money for all to be earned. The lesson to be learned is that following sideways moving stocks doesn't always pay off. ** See how I struggled with Roku in a blog I posted on April 15th. It's all to easy to get fixated on sideways moving stocks. * Roku closed down $.55 cents on the week and as mentioned previously in my April 15th blog, Cathie Wood the founder of "Ark Investor" now has some skin in the game.

Comments

Post a Comment

Popular posts from this blog

A Fireside Chat - One Year Options and Thirty Day Options. Which is Better?

Image
Some say to think small, not big. Trying to play Disney options is thinking big. It is a stock slightly out of favor. If we start with it's a three year chart, we will see it is down by about 50% over that period of time. Now it's one year chart. If the stock can break 110 in early 2024 the sky is the limit. It does have a lot of moving parts so anything could happen. Look at these Calls options one year out. One year in options buys a lot of time.They look reasonable. If the stock ever inched up to the $105.00 price level in the three or four months these options would jump up in price by about 50%. Even more if they had really good news. Yet it's the "what-if" aspect of the equation that castes such a trade in doubt. "What if" stories just don't cut it. There are to many variables in play. Then again, why are we even thinking of long-term Call options after a December's rally? Let's switch gears. If consumers are out spending for X-ma...
Read more

Waiting For A Drop On The Opening On Bad News - Eli Lilly

Image
Here is the bad news. The company is Eli Lilly. How bad is this news? Well look at it trading in the premarkets. So what do I think? I think the news is a setback of sorts, but not really all that bad. The stock is going to open lower, that's a given. It's like trying to play Boeing after an announcement that an airplane has crashed. So the stock is going to crash and it might have a small rebound and then it's going to slide down some more. A test of sorts will happen sometime in the afternoon. It might stock falling but then where will it go from there? The best case scenario is a recognition that investors got it all wrong and the stock ends up flat on the day. Yet there might be more of a downward dumping of the stock on the close followed by a selloff on tomorrows opening. Should option players be jumping in to play the upside on next week's Calls? That is the question. Here is a look at Boeing on the days after a crash. Day two after the crash was equally as ...
Read more

Another Blog On "Vinfast"

Image
There is so much to read about this companies history online. Do your own homework. Their success is not dependent on what ends up happening with their sales in North America. They are nimble. There are plenty of auto factories all over the world now for sale they can acquire. They have dabbled in Australia. Having access to money to keep going doesn't seem to be their problem. Rivian also seems to enjoy this advantage. Vinfast is currently building a new plant in India which could employ thousands of people. That's an emerging new market. New relationships are being built and new investors will be coming onboard. Are option players looking at this stock? Not really if we look at these "one-month-out" Calls. What about Calls further out? What about next January? Here is a look at the three and four series of Calls. Nobody seems willing to bet Vinfast Calls. Now this. Here are two snippets taken from a blog I wrote about this stock back in early December of 2024. ...
Read more