Featured

Exxon And Tesla One Week Options

Exxon's five day chart is obviously going in one direction. Last Friday was a strong day for the markets and Exxon jumped up even more. Here we are now on a Monday morning and this week's Call and Put options are priced equally. Which one is going to win? As usual, there is more interest in the Calls than in the Puts. Let's also look at what might happen with Tesla this week. Oct 10th is now touted as being a "make or break day" for Tesla as it will be their "Robo-Taxi-Day". I am not a big fan of trying to play Tesla options with one week to go because their premiums are so expensive. As for Exxon, I would be more inclined to follow the direction of it's recent trend. Let's watch and see what happens. To be continued. 1) Obsevation #1 on a Monday morning. Look at this. Early into the morning trading the Puts have dropped down from the $1.80 level. Can you see how tight the "bids" and "asks" are. This helps to make them pl
Post a Comment

Nvidia Options With Two Days To Go

Triple witching is kicking in on Friday and today is a Wednesday with the markets being closed. It's strange that they are closed but they are. The next two days of trading are going to be different. Big players with big bets most likely made closer to the start of the year now have to be rolled into something further out. If you just made $3 million dollars on stock options from trading Nvidia wouldn't you think about taking a tiny portion of the profits and put it into playing the downside? Here now are Nvidia's five and thirty day charts and soon we will looking at the crazy volume of trading on it's "near-to-the-money" Call and Put options. These are options with only two days of trading days life left in them.
Can you see it stepping up in price nearly everyday? Like up five days in a row. If you get a ruler out and join up the lines you will see that odds are, based on day to day action that's what is going to contunue to happen. Might it slip back off a few dollars or dive down twenty dollars on ugly news? It could. Some speculators think like that. Remember it recently enjoyed a 10 for 1 stock split. The stock is hot. Now this.
Look at the total number of contracts traded on the day and the end of the trading session's open interest. Think of how large these numbers are. Now the Puts.
If the stock swings $4.00 in one day somebody is going to make some money in the next two days! Let's now see how Nvidia traded on Tuesday. Remenber how the markets were closed on Wednesday .
To be continued. Approaching 1 p.m. on Thursday.
Now a look at the Call options.
Now the Puts. This time it's a 12:52 p.m. readout.
Now a Thursday "end- of-the-day" printout. Look at the drop.
Now the Puts.
Now for Friday.
Who would be brave enough to be buying the Puts on Thursday's strong opening? Think about this on our next triple witching occurance!

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 slighty 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-mas
Read more

The Crazy Last Day of Option Trading In Tesla.

Image
First, look at it's five day chart. Big jumps everyday. If you try and jump in and play the downside everyday you will quickly get beat up. Here for example is one look at the Tesla 235 Puts on Wednesday at 9:34 a.m., only then to check out the same Puts a few minutes later at 10:15 a.m. How do you know what to do? Well you don't fight stocks running up over $8.00 in the first thirteen minutes of trading. Now here is how these Puts were trading at 12:59 p.m. The game is to sell the Puts when the stock is rising and then cover them to be out of the markets at a profit by the end of the day. It's not the small fish playing this game. Now today is Thursday July 4th and the markets are closed. Tomorrow is Friday July 5th.These Put options will be expiring at tomorrow at 3:00 p.m. If Telsa opens down two or three dollars on the opening there is the potential for a small reaction. They will still however be extremely "out-of-the-money". They might jump a touch i
Read more

Deere Lays Off /Tesla / Eli Lilly/ Home Depot/ Nio

Image
It was announced today, a Tuesday that Deere is going to lay off some of it's workers. Perhaps that news was leaked out last Friday and that's why it could have sold off last Friday afternoon. The stock basically has done nothing over the last three years but some traders love it for it's thirty day swings. I have talked about Deere before. The markets were accepting of this news. In other news Tesla Call option traders are rejoicing. Image getting in two trading sessions ago at $196.00 to watching it shot up to over $230.00? This was (it's up in the premarkets again) the Telsa trading opportunity of the year! Then there is upside movement in Eli Lilly. But then there is this background news. Now this. Talk of a hurricane. Will Home Depot go up? Then there is Nio. It's shares trade huge volumes and the stock has a wide following. Might it trade back up to $6.00? It's down almost half price on the year. One of the problems in trying to anticipate what m
Read more