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Ford Is Expected To Open Lower

Let's jump right in. It's Monday morning and here is how the 12 series of it's Calls that are expiring this coming Friday are starting the week. The "bid-and-ask" on the stock was down about $.05 cents in the premarkets. The markets are sometimes slow to get going after a weekend. If the stock opened lower in sympathy with the markets opening lower, how low could this $.27 premium trade down to? Would they then be a good buy if they dropped to like $.19? They do afterall still have five full days of trading like left in them. Now this, today's action. It was nothing to crazy. The stock only moved up $.03 or three cents on entire the day. This printout is not pretty but it tells you a lot of stuff. 1) The low of the day. It was $.11 or eleven dollars a contract at around 11 a.m. Yes the stock sputtered a touch, then it moved up again. 2) Look at the high of the day, $.27 or twenty seven dollars a contrct which is over a double from the low of the day. 3) I am...
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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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