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A Classic Apple Story ... or ... An Apple Story In Disarray

It's Thursday after the close. 1) This is how Apple closed. What I am showing is it's five day chart.Today Apple had it's largest one day drop of the week. 2) Here are it's Calls and Puts on one series of options that expire tomorrow. We are showing the 262.50 series of Calls and Puts. I am impressed by how tight the bids and asks are. Some other stocks like Walmart also trade like this. ......... 3) Look at the price increase on the Puts today. This was a day when the D.J.I.A dropped 669 points on the day. These Calls now look cheap to me, but who needs to be in a game like this? There is no tommorows after one day options. Most short term option traders avoid the stress of holding last day options going into the final day of their trading lives. There will always be new action in tomorrows trading session. Let's watch and see what happens. *** So Apple dropped $13.77 on the day and the 262.50 Calls which are "out-of-the-money" by $.77 cents now cost $...

Towards Understanding The Usefullnes Of Long Term Call Options

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Why are we looking at this? Well can you see how Ford was trading at $10.00 only five days ago. If it ever rebounded back up to that level in the next couple of days or weeks these options would probabaly jump up twenty percent. In other words, "one-year-out" Call options on stocks in this price range offer amazing leverage. The fact that they are one year out doesn't rule out the possibilty that you could be "in-and-out" of them with a decent profit in a relatively short period of time. On a differing note, options on stocks in the five dollar range can sometimes suprise. Here is a stock I talked about before it had some big moves.
For now, stay clear of all Moderna and Eli Lilly Call and Put options. That plus learn to appreciate that long term options can be used for short term gains. *** The same Ford Calls the very next day on the opening.
Now here they are two days later.
Here they are again. This time ten days later.
Look at the one day volume pour into them. Something has changed in the auto building industry to make this light turn green! Once again, long tern options on Ford can be an amazing trading vehicle.

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