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Exxon On Tuesday Morning.

It's down. The 117 Puts are up over 40 %. Only one Put sold on the 117 series of Puts in the first 33 minutes of trading. Now look at the Calls. This time we are lowering the striking price by $2.00 to get closer to the money options. Will these Calls rebound? Slightly later. Here is how they closed the day. I am not a big fan of holding onto short term options overnight on last week to expiring options however these ones are still two weeks out. That's still not much comfort. My excitement of my previous blog yesterday talking about four trading opportunities to trade these options in one day has now gone up in smoke. The one assurance with trading these options is that oil is an international commodity and the outcomes of how it is going to trade are outside of the control of the market makers. So yes option trading on Exxon is not always a walk in the park. Let's see what happens.
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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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