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Eli Lilly At Ten A.M. On A Thursday Morning

Eli Lilly is the star of the week as it moves up on good news. What is this good news? Well going forward for different reasons they are going to be able to sell more of their weight loss drugs at lower prices but in much higher quantities. Other changes will help to make it for difficult for their competetior to reach the economies of scale necessary to make it all happen. Is now a good time to be looking at it's Puts? It's 10:00 a.m. and the stock is already up $12.00. The stock is up on good news now for a few days old. Fighting a strong stock in a hope to catch it at a top is one of the most dangerous trades to make. At 2:10 p.m. the market is way down..... ... the stock doesn't know what to do. Here now is how the 1,030 Puts closed the day. They jumped from their 10:00 a.m. price of $11.90. It afforded a comfortable amount of time to get out at a profit. Here is how the Puts swung on the day. That's what daytrading should be all about.
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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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