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Snowflake Part Two : Thursday Overnight Position Going Into The Final Day Of An Options Life Are Not My Cup Of Tea Unless It Is Perhaps Tesla

The 172.50 series of options on this stock will expire tomorrrow. Today is a Thursday. The first printout shows a bit of a struggle on the opening in the first nine minutes of trading and a return to price it closed at in the previous session. (It did have a nice rally on the previous day then to only give it up). Could it rally again this morning? Now the second printout below the following paragraph shows the high volume of trading pouring into this series of Calls just after the opening. These high volumes of trading shown below happened in the five minutes and twenty one seconds of the trading session. Traders bought in on a slight dip looking for a reversal. Good for them. Are these traders hoping to be out at a profit in the next fifteen or thirty minutes? Yes. Get in and get out. Catch a profit as the stock is deciding which way it will go. It's early in the morning trading session and the volume of trading is always the highest in the first and in the last hour of trading....
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Fresh Eyes on Deere

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Let's start at noon on Monday August 26th. In previous blogs I have mentioned how low the volume of option playing is on this stock. Why is that? Well one of the reasons is that the company is light on new releases and anyone trying to analyze the company should do so with a longer term prospective. It's not like tracking Boeing which seems to have a thousand moving parts and near daily stories of what just happened the day before. That's why I have sometimes said Deere makes directional thirty day moves and it is easier capital on options that are one month out, rather than one week out. That said, here is it's thirty day chart. August 10th was the time to be getting in on it's Calls. It's path forward now is less clear. That said, let's now start this blog with its five day chart. It's flat on the day after being higher on the opening. ........ One thought. It could rebound a couple of dollars before the end of the day. Here now is how it closed ...
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How Government Policies Influence Certain Sectors of The Market

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Read this. Stop right here if you want or keep reading. What's going to happen when they change this red light to green?
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Why Not To Focus On Nvidia?

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An earnings report is coming out this week. What a wild run it has had. So many traders are watching it. Here is it's 30 day chart. It's Monday morning on August 26th and here is how this weeks "out-of-the-money" 130 series of calls are trading. Over 31,000 contracts traded in the first 25 minutes. This is only one of many series. Now here is it's five day chart. Imagine catching it last Thursday when it dropped ove six dollars with options that expired the next day or catching it last Friday on one day options rebounding four or five dollars? That's where the real action was. Waiting now for the release of it's second-quarter earnings report after the markets close on Wednesday, August 28th is a fools game. Now a parapraph on AMC Entertainment. I don't really follow this stock however I was watching the five series of options trade trade on it last Thursday and Friday when the stock waivered around the $5.00 mark. What a seesaw. Look at how this we...
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Towards Understanding How "The System" Favors The House

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Understanding the "bids" and "asks" is study in itself. The system is set up to ensure that most option traders are dissuaded from speculating in short term options. Look for example at the spreads on the opening on these Caterpillar Calls. The stock had a decent bounce on the opening however only one contract traded and it traded for only eight cents more than the previous days close. Does that seem fair? Not really considering the options we are looking at are "in-the-money" and the the stock made a decent bounce. The spread between the "bid" and "ask" is huge. The following example illustrates the same thing. The stock is only up a touch but the "ask" is priced defensely making it expensive to buy into yet the holders of the Calls are not being rewarded for the stocks upward swing. Early morning "bids" and asks" like this are troublesome. It's not only Caterpillar stock, there are other options series ...
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Comparing The Price Action Of Four Different Stocks On a Wednesday Morning at 9:35:00 a.m.

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This blog is exhausting to read however it helps to point out the ambiguities of option trading. At times its a grind. A times there is no direction as to which way it might go next. In this blog the markets have just opened a little bit stronger. Look at how the Call options are trading on these four stocks. Number one on this list is Boeing and we are looking at it's five day chart. Look at the high volume of stock trading in it on the day. It's three month chart doesn't look very impressive. Here now are how one series of "end-of-the-week" Calls are trading. The open interest number is not that high. Let us now show you how it closed out the day. It's five day chart doesn't look that exciting and the trading volume in it's options is quite light. Here now is how it finished out Thursday August 22nd. Keep in mind however that Boeing can jump three dollars quite quickly at anytime. Next #2 Tesla. Look at the spike in the volume of trading every...
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