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Costco. It's Short Term Options

 Options on stocks in the $1,000  range often move  50%  or more in only a matter of  minutes on the opening on Wednesday and Thursday's . The trick is to  anticipate correctly which way the markets are going to move. That's a fools game you might say? Yes and no. It may not be a game you ever play but it might be something to consider to put in your bag of tricks when you are on a role. One thousand dollar stocks sometimes move five, ten or fifteen dollars on the day. If you have profits it's best to take them quickly. Costco is a prime example of that. Let's look at this mornings action. First it's five day and one day charts. Tuesday's trading was kind of choppy. Might it drop on the opening tomorrow? Here is a look at where the 1,035 series of Puts closed that expire this Friday. They closed at $8.50. It looks like Costco cycled up about five times yesterday. Given a weak market opening doesn't it stand to reason a three or four or five dollar will be i...
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Three Month Charts and Tesla

Is the world of option trading tidy, simple, predictable and coherent? No. Look at these three month charts. The first three are ugly followed by two that are not.
What's with Moderna? The U.S. government is talking to Moderna and Pfizer about a vaccine development program for bird flu. What's with First Solar? Rumors of solar power stocks being the beneficiary of A.I.. So the question now is how does one navigate in the world of option trading when the pace of change seems to be accelerating? It's difficult. Our minds can be blind to the obvious, and we are also blind to our blindness. In this current market state of rapid change one way of playing options might be to try and catch the daily price swings in Tesla. Here is it's most recent five day chart.
Catching a ten dollar bounce on a Tuesday with Call options on Tesla that expire on Friday or a five dollar bounce on Friday that expire that day can put a smile on your face. (Tesla is not always this jumpy).

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