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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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The Stock Nio. Do You Know It?

Interesting action this week. The company had an earning report but more importantly was a release of the number of units they have recently produced. They are still as of yet to break even. The day they break even will be a day to rejoice. Once again all investors really care about are production numbers. This has being an exhausting ride for buyers who bought the stock back at $40.00.
It's jump from four dollars to five dollars has being noted. Look first at it's one day chart above and the volume of trading on the five series of Call late into the action on Friday afternoon.
Sometime after 9:58 a.m. when we first looked at these Calls at $.06 cents or six dollars a contract they sold down to $.02 or two dollars a contract and then rebounded back up to a high on the day of $.20 or twenty dollars a contract. Is any this action playable? Well in this case the options jumped up in about a fifteen minute period of time. If you look at the one day chart you can kind of figure out when that was. You would of have being kind of quick to catch both the highs and lows. In two of my past three blogs I focused on the topic of playing five dollar Call options. They are scary. Anyone buying the $4.00 series of Calls on Nio at the start of the week have done very well. Some people don't like the transparency of Chinese companies. I get that however Nio has become a global player in the electric car industry. Once again , options on five dollar stocks can sometimes suprise. **Nio was the most activity traded stock on NYSE this week up $.98.or 24.3%. Nio popped again ion the following Monday, Sept.9th. Options on a five dollar stocks can sometimes be on fire.

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