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Showing posts from August, 2024

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The Trap On Costco With One Day To Go "Call" Options

Let's start by saying it's 3:00 p.m. on Thursday and I am going to talk about the big sell off that Costco experienced this morning on news that seemed to take some time to be disceminated. It turned out to be regular stuff kind of news on the subject matter of last month's food sales. In the early few minutes of trading the average retail trader had no knowledge of what this news was all about. Opening markets started falling quickly. That sometimes happens. Let's move forward to 3:03 p.m.. Costco is way down in price $28.00. That's a big chunk. Might it's Call options rebound tomorrow? I don't usually find these "looking-for-a-rebound" situations to be very profitable. Might there be a second wave of opening selling pressure on the opening tomorrow?. That's the worry. Now there is more to the story that option traders might want to hear. It has to do with what happened this morning. Costco had a great fall. Look at this morning chart. It l...
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The D.J.I.A Drops over 1,000 Points on The Day

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Yet some lucky option trader's could have made money buying Telsa Calls. Bumpy markets offer Option traders some of the best times to make money. How have Caterpillar, Boeing and Deere done in the last five days? All three of these stocks offered Call option players decent returns if the bought in just after the opening this morning a Monday. To be continued.
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Roku And It's 2nd Quarter Earning Report

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Let's start with the time period of Thursday morning with an earning's report coming out after the closing bell. Look at how crazy expensive these three series of Call options are. They are the Roku "out-of-the-money" Call options that expire tomorrow. The volume in them is not all that crazy but if I owned the stock I would be tempted to sell the Calls against my position and hope they would expire worthless. Tomorrow is Friday August 2nd. ...... ....... Why pay so much? Why pay $4.05 for a Call with a striking price of "58" with one trading day to go in the contract? The stock would have to jump four dollars just to get your money back? Talk about stupid? Yet then again Netflix, a company also in a similiar space sometimes moves like ten dollars in one day. Here now is a look at what happened by showing tomorrow's five day chart. Down $2.19 on the day to $53.14 with the DJIA down over 600 points. Say goodbye to those Calls if you ever bought in. N...
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