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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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Boeing on a Monday Morning / Then on Friday at 3:00 P.M.

The DJIA is down again. That's not really a suprise.
Now a look at one series of an "out-of-the-money" Call option that expire this Friday.
Throwing good money into the wind you might say? Now this. A look at the same series of Calls on Boeing at 3:00 p.m. on Friday near the end of the trading session.
I don't like trying to play options on stocks like Nvidia, Apple, Meta Platforms, Amazon or Microsoftware. I don't feel I know enough about them to trade them on a daily basis. All least with Ford or Walmart or Nio or Tesla or Eli Lilly or McDonald's or Rivian or Netflix I have a fuzzy feel as for what happening with the working environments these companies find themselves to be facing. At least I think I do. Rising food costs will now hurt Costco which imports food, tariffs will hurt Ford who send vehicles across the border and higher unemployent rates will mean less people will visit Disney. These are all causal relatinships. The cruise ship companies were in a good space to be in after the pandemic. Five years ago it was always wise to buy Calls on Home Depot on a Friday if a hurricane was coming. Now not so much so. There are also caveats. I like Nio because their sales are going up. Yet how reliable are sales figure numbers coming out of China? Are buyers there getting government subsidies? We will never know the entire story. Caterpillar and Deere are difficult to play because of the high levels of instuitional ownership. Investment gurus can put spins on things which send these two stocks flying upwards in price or crashing downwards on assumptions or theories that the common man will never be privy to. A few months back I got hung up on Walmart Calls which predictably went up for a one month period of time. These options trade in one-dollar increments which made the near smallest of price movements on their Calls playable. People were turning to Walmart (at least that was the theme in play) to save money and Costco and Walmart were jumping upwards to the moon. That sentiment has now shifted as people now are worried about the effect of tariffs on the cost of food. We are moving into a world of tariffs. Eight weeks ago that was of less of a concern. I remember Russia invading Ukraine back in February of 2022. Barron's magazine at that time had a cover picture of people in an urban setting trying to get across a bombed out bridge. It was a horrific photo that shocked the world. That was another time when it was best to stay away from option trading. Once again we are in a "stay-away-from-option trading" zone. Nothing seems to makes sense. Boeing somehow survived the week unscathed. I don't like these markets.

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