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Looking For Options That Can Have Big Moves On A Near Regular Basis. This Might Help.

Since the start of the year I have done 9 blogs on Tesla, 8 blogs on Caterpillar, 6 blogs on Eli Lilly, 5 blogs on Exxon and less on others. Guess which stock fascinates me the most for option trading? The answer is Exxon and I want to share with you one of the most dramatic one day option price swings I have witnessed this year. It affected as you might guess "last-day-to-expiring options'. It happened yesterday on February 20th which was a Friday and it happened with it's one day Put options. What do I know about the world energy situation and the complexities of oil tankers circling the world? Not much. I do have two good friends in the oil business who don't know each other but they both say the same thing. They don't talk about business that much but say things are good when the price of oil is down and say things are bad when the price of oil is up. They both seem to work like six months a year overseas and they both are avid soccer fans. They bet on soccer ...
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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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