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Apple Charges Downwards Towards The Close.

What does a downward spike on the closing mean? Does it mean something different than a upward spike on the opening? Spikes upwards on the opening happen on good news. Spikes downwards on the close are not necessarily for company related issues. More often than not it has more to to do with just getting out of the market. Case in point Apple dropped in price rapidly towards the close to then only being off only marginally after the close. A sense of stability was created with that reading . So are Calls on the upside the way to go? Let me show you two different series of Call options with the intentions of pointing out how "in-the-money-Calls" trade differently than only slightly "out-of-the-money" Calls. First the "in-the-money" Calls. Now the only slightly "out-of-the-money" Calls. Let's watch to see the difference.
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The Power Of "One-Month-Out-Options" For Short Term Gains.

It helps when the markets rally on a Monday but that's a secondary issue.
This blog is about stocks in the seventy dollar price range with options on them staggered in thirty day intervals. Is trading in options which trade in only in thirty day intervals better than options on stocks in the same price range that expire every Friday? My experience is that options on stocks that trade every thirty days tend to attract less interest which in turn means that they are less susceptible to "market-maker" manipulations. Yet this isn't really a point I want to debate. Now this, a look at the seventy series of Calls on "Carmax" at the end of the trading session today.
Bid 5:70 ask 5:90. Only two options traded on the day. Let's now look at it's five day chart.
So it jumped a touch but nothing to crazy. Now this, I did a blog last Friday, my previous blog where I showed what the same options were trading at on that day. Here is the printout I want to show.
A 10:39 a.m. readout on Friday morning showing only three option contracts traded with a last trading price traded of $4.07. Is there a lesson here to be gained? Yes, thinly traded "one-month-out" options can be successfully traded. What appreciations are there to be gained? Well there is less market maker manipulations. When you put in a closing sell ticket for only one, two or three contract and if the trend of the stock is upwards you will get a fill without going through the game of watching option makers wiggle the "bid-and-ask" in their favour. One month out options, played correctly are also less stressful to hold because the premiums built into an options price for it's time value will not disappear as quickly as the premiums built into one week out options. That's just the way I see it.

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