Featured

Livewire - Again

 From the verge of extinction to new life. It all happen with a few sentences offering guidance. One dollar to three dollars in a couple of days. Management is guilty doing a terrible marketing job over the last few years. But wait. It was public news that a police department was experimenting with their electric bikes. If nothing else they would be a moral builders to the lucky cops who got to play on them. I followed this situation but stayed away. One dollar stocks are dangerous. Now here is it's three year chart. While the companies fortunes may be changing I still will be staying away. I missed the boat. That's life. Here is one look at one series of it's next week options. The ramifications of this event is taking a few days to unfold. It can't keep going up this much every day yet some traders are willing to take the risk.
Post a Comment

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.

Comments

Post a Comment

Popular posts from this blog

Living on Kraft Dinner?

Image
What does the word disconnect mean? As a verb it means "to sever or interrupt the connection of or between; detach". Option trading - one day options - is a disconnect from the world. What happens to slightly "out-of-the-money" Call options on Costco when the stock shoot up thirty dollars on the day? I will show you what happened on Friday to Costco Calls and the options on a few other stocks I frequently watch. What a disconnect from the real world. But before that a look at how the indexes traded. 1) Costco. It's five day chart and a look at how three of it's option series moved upwards in one day. You may not know how to read these printouts but try to read the highs and lows on these option pricings. One printout shows an "at-the-money" option which means you are buying a contract on the stock, good for one day only at a locked in price equal to (or very close to) what the stock is currently trading at. The other two contracts shown are ...
Read more

The Little Engine That Could

Image
Walmart again. It's all I seem to blog about. Here is it's five day chart. The stock keeps going up and the option series are set up in one dollar spreads. Even a fifty cent move on the stock moves the needle on these Calls. Look at how this series of Calls was trading yesterday at 3:00 p.m.. Now here is this same series of Calls just before noon today. Thirty days of upward action like this punctuated by the off day of decline. Now notice the higher volume of trading in the series of Calls with the higher striking price. These are the ones's with more leverage. At the same time look at the five day chart on Costco. The two stocks sometimes trade in tandem. Humpty dumpty sat on a wall .... a had a great fall. Someday soon a fall might happen but what a great ride it has been.
Read more

A Fireside Chat - One Year Options and Thirty Day Options. Which is Better?

Image
Some say to think small, not big. Trying to play Disney options is thinking big. It is a stock slighty out of favor. If we start with it's a three year chart, we will see it is down by about 50% over that period of time. Now it's one year chart. If the stock can break 110 in early 2024 the sky is the limit. It does have a lot of moving parts so anything could happen. Look at these Calls options one year out. One year in options buys a lot of time.They look reasonable. If the stock ever inched up to the $105.00 price level in the three or four months these options would jump up in price by about 50%. Even more if they had really good news. Yet it's the "what-if" aspect of the equation that castes such a trade in doubt. "What if" stories just don't cut it. There are to many variables in play. Then again, why are we even thinking of long-term Call options after a December's rally? Let's switch gears. If consumers are out spending for X-mas...
Read more