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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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Trump Says "We Will Be Off To The Races When China Calls".

First Solar tanked on the opening (a Wednesday) on news of an economic slow down and Trump talk. At 9:43a.m. the D.J.A.I is down 630 points.
First Solar took a hit.
Now this about ten minutes later. The stock has stabilized. Volume on the Call side is increasing.
One trade at $2.86 and the spread between the "bid and ask" actually widening. It's the catching the falling knife syndrome. Now this.
The DJAI keeps going down.
Twelve minutes later strenght has come into these Call options. The spread between the "bid and ask" remains crazy high. The stock has stopped falling.
Where are these options going to be in ten minutes time which will be 10:20 a.m. Can you see how nerve racking playing this sell off is?
The "bid and ask" are now tigher. Normalcy is returning. Or is it?
Now a recap. $2.99 at 9:48:00 a.m.,$4.00 at 10:00 a.m. and $5.40 at 10:10 a.m. Only 29 contracts traded during this time period which tells us that option traders are not conditioned to be playing these kind of moves. Nor is Ai trading considering the millions of dollars they spend on tracking and profiting from market moves. Yes you can catch a falling knife. Notice that this stock started to rebound before the DJIA stopped falling. Successful Call option traders had to recongize that. Now a 11:20 a.m. reading.
Notice the increase of only one Call option traded? Now the final end of day pricings.
The DJIA closed up 148 points. :::::: Now a next morning look.
The end.

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