Featured

Caterpillar - Catching A Reversal On A Tuesday

Tuesdays are not the best of days to look for reversals however Caterpillar jumped a modest amount which impacted the value of this series of Puts. This is a 1:36 p.m. readout. Here is it's five day chart. Now its one day chart. It would seem like kind of a random thing to do and why fight a strong stock? One reason is that the markets are only mildly up and could give back some of it's gains before the end of the day. Caterpillar could be gaining strenght based on last weeks articles talking about how Caterpillar could potential gain from this new AI movement. Notice that the five day chart is in an uptrend and notice the small open interest numbers in the Puts. No one wants to hold Puts on Caterpillar when it is in this uptrend. Could it has a soft selloff in the next two hours? Here it is now 50 minutes later. The "bid and ask" are almost unchanged. There is also not much change in the DJIA index.Now this. The DJIA is sellig off and Caterpillar is hanging ...
Post a Comment

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.
...................
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.

Comments

Post a Comment

Popular posts from this blog

Living on Kraft Dinner?

Image
What does the word disconnect mean? As a verb it means "to sever or interrupt the connection of or between; detach". Option trading - one day options - is a disconnect from the world. What happens to slightly "out-of-the-money" Call options on Costco when the stock shoot up thirty dollars on the day? I will show you what happened on Friday to Costco Calls and the options on a few other stocks I frequently watch. What a disconnect from the real world. But before that a look at how the indexes traded. 1) Costco. It's five day chart and a look at how three of it's option series moved upwards in one day. You may not know how to read these printouts but try to read the highs and lows on these option pricings. One printout shows an "at-the-money" option which means you are buying a contract on the stock, good for one day only at a locked in price equal to (or very close to) what the stock is currently trading at. The other two contracts shown are ...
Read more

The Little Engine That Could

Image
Walmart again. It's all I seem to blog about. Here is it's five day chart. The stock keeps going up and the option series are set up in one dollar spreads. Even a fifty cent move on the stock moves the needle on these Calls. Look at how this series of Calls was trading yesterday at 3:00 p.m.. Now here is this same series of Calls just before noon today. Thirty days of upward action like this punctuated by the off day of decline. Now notice the higher volume of trading in the series of Calls with the higher striking price. These are the ones's with more leverage. At the same time look at the five day chart on Costco. The two stocks sometimes trade in tandem. Humpty dumpty sat on a wall .... a had a great fall. Someday soon a fall might happen but what a great ride it has been.
Read more

Another Blog On "Vinfast"

Image
There is so much to read about this companies history online. Do your own homework. Their success is not dependent on what ends up happening with their sales in North America. They are nimble. There are plenty of auto factories all over the world now for sale they can acquire. They have dabbled in Australia. Having access to money to keep going doesn't seem to be their problem. Rivian also seems to enjoy this advantage. Vinfast is currently building a new plant in India which could employ thousands of people. That's an emerging new market. New relationships are being built and new investors will be coming onboard. Are option players looking at this stock? Not really if we look at these "one-month-out" Calls. What about Calls further out? What about next January? Here is a look at the three and four series of Calls. Nobody seems willing to bet Vinfast Calls. Now this. Here are two snippets taken from a blog I wrote about this stock back in early December of 2024. ...
Read more