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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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Things Are Happening Quickly With Trump Coming Into Power.

Look at this. Pfizer. It's five day chart. What is happening? Look also at Eli Lilly's five day chart.
Now look below at how Eli Lilly sold off again, this time on Monday morning. The news of what was happening was further decimated over the weekend.
Can you jump in now and play it for the upside? Perhaps but who would want to? Call options on it are so expensive now that this time it would have to rally way more than half of what it just lost so far today just break even by the end of the week. Who would want to take this risk?
Now a question. Why is the open interest posted above at zero now? Well traders last Friday looking for a rebound where busy purchasing the 745 series of Calls instead. Not this series. Now here is how the 715 series of Calls closed out the day. They ralled over $4.00 a contract since we first looked at them.
Here is now what it's five day chart looks like at the close on Monday.
Now consider Pfizer. Might it rebound a touch at this point in time? Well options with less than a week to go in the twenty five dollar price range are dangerous. Here is a look at how it's "in-the-money"$24.00 series of Calls options with ony four trading days to go are trading at the end of the day on a Monday. Will they pop enough on the opening tomorrow to get out with a 50% profit? "In-the-money" Call options in this price range sometimes offers this potential. Not many traders were jumping into them today. Friday, when these Calls expire is still a long ways away.
No such luck. The DJII is down on the openining 325 points.
Eli Lilly is also down just over $10.00.
To be continued.

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