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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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Learning To Pick Your Battles - Walmart One More Time.

In the last week or so I have done four blogs on Walmart and each time I seem to show situations where traders can eke out small profits tracking the 91 or 91 series of Call options. What is the logic in such an approach? Well look at Walmarts one year chart compared to two other charts I have provided.
The difference of coarse is that Walmart's trading pattern has an upwards bias. One other factor comes into play in helping to make Walmart interesting options to play. The one dollar spreads between the "bid" and "ask" unlike the two dollar and fifty cent spreads between the "bids' and "asks" on stocks like Caterpillar and Boeing. This has the effect of making small changes in a stocks price more playable. Walmart also seems to have "less chatter". What do I mean by this? Well its not like Boeing which has scares of doors coming lose on their airplanes or like Caterpillar which is having to constantly adjust the size of their workforce. Does all of this mean Walmart options are for option players who take pride in being risk adverse? Not really. You still have to quick and nimble. Walmart for example jumped on the opening this morning as I am writing this blog and the 91 series of Calls are up 92% in the first ten minutes of trading.
Then look at the 92 Puts between 9:39 a.m. and 9:55 a.m.
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All this action happened in the first hour of trading! Walmart options while easy to play must be handled with respect. As a newbie looking at option trading I would suggest this is a good stock experiment with. Here is the morning chart which better explains how all this action happened.
How did Walmart end the day? Here is it's chart down below. If you caught the morning action you really wouldn't care.
The markets are closed tomorrow (thursday) for a presidential funeral so it's time to look at something else. Dicovering new opportunites is never hard to do.

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