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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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Caterpillar and Boeing

Here are their five day charts. Caterpillar was down $41.61.
Boeing also got hit. It was down $36.72
It's Sunday night as I write this and the DJAI futures market at 10:44 p.m. is down 906 points. How can you use options to play this? Well Put options purchased two weeks ago would have worked wonderfully well. That was then and now is now. What to do. The markets look ugly for tomorrow. Just stay away. The hourly swings in the market can cost you money. Come back in a month's time. Nothing makes sense right now. Last Friday was a unique day. The markets were tanking and options on stocks were expiring the same day. Look at this chart of Eli Lilly last Friday at 10:42 a.m. The stock as down $60.20.
Now look at how these Call options closed the day.
With one day options the premiums for time value are very low. Buying any Call option tomorrow (Monday) will have an expiracy of April 11th (a Friday) meaning baked into the option's pricing will be a premium for time value. Thats not a good thing. But wait. At the start of last week I did a blog about Carvanna and it had Call options on them that sank on Monday morning and then came back up strongly in the first hour of trade. Could that happen again tomorrow? Not really. The weekend rallies against Trumph were to great. There will be nothing Trumph can say or do tomorrow to save the markets. Now is not the day to be trying to outguess the markets. That will change as the week progresses. For now just stay away.

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