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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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Monday Morning April 7th

1) Had you bought Puts on the close on Friday on Tesla you would now be up 95% in nine minutes.
2) Had you bought Puts on Eli Lilly on Friday at the close you would now be up 162%.
3) Had you bought Puts on Home Depot on the close last Friday you would be up 85%
4) Had you bought Puts on Caterpillar on the close you would be up 100%
5) Had you bought Puts on Costco on the close, you would be uo 105%.
Does it feel like you are always one step behind all the action? Can you now gamble on Eli Lilly to play the upside? If you read my last blog that was one of the few stocks that rebounded a touch interday on last Fridays slide. Maybe if you catch it right.
Buy stocks if you like them at these prices but its not a good week to be dancing around trying to play Calls. The action in option trading for retail option players will intensify towards the end of the week when the time value built in premiums on short term options that expire in a day or two subsides. Those will be the days to make shooting for the sky trades. *** Tesla had a bit of a rebound in the first 25 minutes and nimble options players could have caught a rebound. These ones can back $7.50. It takes a magician to catch these kinds of trades.
Now back to Eli Lilly. It bounced $60.00 in 43 minutes.
Image riding that wave holding Call options.

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