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What Do I See Here? It's Disney In Nose Bleeding Territory.

First it's five day chart. There was news this morning which might be attributable to this morning's jump in price. Ai news should always be taken with a grain of salt as it doesn't add to the bottom line profits overnight. The markets jumped today big time. Do markets sometimes take a pause after big jumps like this? That's the question and that's why I am attracted to it's one day Puts today just prior to the closing bell. A fifty cent selloff in tomorrow's premarket or shortly after would cause these Puts to jump by 50%. A double in price on the Puts would take a bigger move down than fifty cents. Might the stock give back one half of what it gained today? Here is how it is trading in the aftermarkets on Thursday. One concern is the light open interest numbers. This can make for larger than usual spreads between the "bid and ask". Let's hope it's a get-out-quickly situation however there is still lots of trading life left in these P...
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A Follow Up To A Recent Blog I Did About Playing Two Week Options

Let's begin by saying I am not a big fan of buying "two-week-out" options. Yes they cost a touch more than "one-week-out" options however that is not the reason why. I like thirty day out options and one year out options and Monday, Wednesday and Friday "one- day-options" better. So what's the matter with "two-week-out" options? Here is my answer. Back on January 6th we looked at the Interactive Brokers Group 180 series of Calls that expire on January 17th. At that time they were trading at $4.90 a contract. Here is a look at that printout I posted.
Now this, a Friday January 10th printout. The DJIA closed down over six hundred points on the day.
So here we are at the end of the week and we have for lack of a better word, wasted four days or almost half the life of these options. But wait. Can you see how they where down 47.66% on the day? That means on the previous closing session they were trading at $6.25 per contract. (It's a brokerage company so it's obvious it's going to drop on a day the market has a big sell off). Now a look at it's five day chart.
Imagine buying Puts on it on the morning rally on Tuesday morning and getting out at a huge profit minutes later at about 10:30 a.m. If you follow the charts wouldn't you recognize that could happen? If you answer yes then why do you need to clutter up your mind with "two-week-out" options. I say this because I feel more secure playing five, three or one day options than I do playing "two-week-out-options". Yet that's only me. ** Yes there was a decent profit to be had on the "two-week-out" options preceding Fridays precipice slide but that's another part on the "two-week-out" option holding syndrome. The urgency to take profits isn't there compared to playing shorter term options. ** How did these 185 Calls end up trading on January 17th?
Bottom line. The options on this stock are more interesting than most.

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