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Costco Options With Two Days To Go. Something To Consider , As Strange As It Might Sound

First, Costco is down $44.79 over the last ten trading days. The company sells food and everyone needs to eat. The chart looks like it might now want to rebound. Down $44.79, it's crazy that it could sell off that much in such a relatively short period of time. What about other stocks in this price range like Netflix? Well the Netflix stock is priced at even a higher level. It's at $1,257.00 today and yesterday afternoon it was at $1,213.00. Yes, today it was up $31.30!. My point is high priced stocks can make big moves and that's what makes Call and Put options on stocks like this so potentially rewarding. Most people would never consider trading in Costco options. I get that. More on that later. Now back to Costco doing so poorly as of late. It's now Thursday morning before the markets are open and here is a look at it's "at-money" Calls and Puts. Notice the light volume of the "open interest'. The two numbers reported here are 480 and 358. Whe...
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Deere On Earnings and Boeing

Here is a look at Deere towards the end of the afternoon after a premarket earnings report was released. It got beat up pretty bad. What we are now looking at is a printout of one Deere option series which will be expiring the next day. This snapshot was taken at 3:37 p.m.. Would now be a good time to buy into these 395 Calls and try to play tomorrow's potential upside? The stock is rebounding from a significant dip.
Lets look at how these options traded the next day. Can you see they hit a high of $4.65 sometime during the following day?
I did two very small trades on the Friday morning bounce back. I just wanted to cover my commissions and make a touch. Remember, Deere options are extremely difficult to play and with only hours to go before this series of Call options expire its not bad to take a profit whenever one materializes.
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My times in were 10:14 to 10:31 a.m. and 10:59 to 11.09 a.m. I missed the elusive high of $4.65 which happened after I got out. Part Two. Can you make money looking for bounces? Look a Boeing's five day trading chart last week and look at how it bounced on Thursday.
Guess what I picked up on Wednesday? "Out-of-money" Boeing Calls, 10 of the 190's, they were way "out-of-the money" Calls and 4, 185 Calls. I got lucky and got the bounce I needed on Thursday morning to make out alright. I did, however sell out to quickly - it's always difficult to guess the top, especially when holding "out-of-the-money" soon to expire positions.
Part two. Now let's move forward to looking at holding Boeing over the weekend. It sometimes pops on Monday mornings. I got in on Friday at 3:57 p.m. and out on Monday at 10:15 a.m. Getting out is always the tough part, trying to pick the correct exit point. This time I was off a bit. I got nervous on the fist dip and should have waited longer. In at $1.06 and out at $1.56.
Here is how the stock traded on Monday.
It dropped on a weak opening and then had some strong legs. It lost steam towards the end of the day. To be continued.

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