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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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Another One Biting The Dust. Farraday Future Intelligent Electric Inc.

A 40 for 1 reverse stock split. Let' see how it survives its first day of trading at it's new price. In the premarkets it's down slightly. That was to be expected. Smart investor have shorted this stock years ago. Just after the opening this morning it was down even more.
Investors who bought in over the last five years or so will never be able recoup their money. Remember Fisker and Electrameccanica both went bankrupt? So what is the Farraday Future news this time?
What's going to keep this company going? Will it ever turn a profit? Read a previous blog I wrote about another company in the same camp called Taiga which makes electric snowmobiles and more recently electic watercrafts. It is a Canadian company heavily financied by the Quebes government.
It has borrowed a lot of money to get to where it is at now. I have talked about it before, see one blog posted on Decber 12th, 2022. It is now under a "stop trading" order.
Stocks trading under $1.00 come with a high level of risk. (Here now is how Farraday Future closed the day, the first day after a 40 for 1 reverse stock split).

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