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Late To The Party Option Players - Disney

Can late to the party option traders make money? It's something to consider? These Call options expire this Friday. There was news on it before the opening today. The second chart below a few minutes later shows it hanging tough. At 10:01 a.m. we now checking out the Puts. The bid and ask on the Puts are very tight. That also makes us ask what happened to the Disney 101 Calls that we first looked at? Here is what the chart now looks like. More Call option players have jumped in to play the upside that the downside. Might one do a spread and try to play it both ways hoping for a breakout either way? That's an option to consider. Disney has being a dog of a stock now for a year so might some profit taking set in? How is Disney going to pay for another theme park? With that on their plates forget any share buy back programs. They are taking on new risks in a period of global uncertainity. Are late to the party option traders best just to stay away from this unexpected situ...
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More On The Concept of "One Day" Option Trades On Friday

How do you learn about stuff like this? One way is to look at raw data. Here is the raw data on how five different stocks traded last Friday. Only that Friday. We don't care about any other day. After looking at these charts I want tell you I know what your answer its going to be to this question. The question is, is there anything in particular that stands out about the one day trading patterns of these five stocks? Your answer is going to be they are all different. Good answer.
If you are ever going to start trading one day options wouldn't it make sense to pick five of your favorite stocks and save the histories of how these stocks have traded on recent Fridays. Tesla swings big and it would be interesting to see its last four week's Friday trading histories. Tesla has the added intrigue of having higher risk "out-of-the-money" options that are known to burst in price on twenty or forty dollar swings.Tesla stock sometimes does that in one day. (Other stocks not so much so). Looking at all these charts is a good thing, it helps in tempering expectations. To all you newbies reading this what you need to know is that we are talking about buying blocks of shares (100 shares) per contract (or per order) without really having to pay their full price. What you are getting is the right to buy the stock at a fixed price. You can sell that contract whenever you want. Your actually just renting 100 sheres of a stock for a few minutes or hours and trying to guess correctly which direction it will move. Getting involved in this activity is also going to cost you like a $10.00 dollar in and $10.00 out commission. There is also a rule that you have to sell out by 3:00.p.m otherwise they will close out your postion for you "at market". Also part of this equation is the notion of buying in on a Thursday with the intentions of getting out the next day. If you are thinking to youself that is something you could never do let me remind you that in two clicks of a mouse you complete a buy and a sell. In my last blog I showed this Friday morning chart of Walmart.
Loosely speaking, anyone spending $250.00 on Call options about 20 minutes into the morning's trading session and who then sold out just before lunch would have got back about $1,250.00 or so? Is the liqiudity there to make these trades? Yes. Fills can be only a second away. Your dealing with computers and everything you do or attempt is time stamped.
*** There is so much to explain about option trading and these little snippets are meant to inspire. Most of the chatter you now hear about one day trading is coming from small fish like me. Find more people like me who are writing about this kind of stuff and do your own experimenting with real money or just pretending to trade paper. Why not learn to make Fridays a day to look forward to.

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