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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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Waste Management Again

Last Friday I did a blog on Waste Managemnet showing how it closed strong on the day. I showed how it's Call options also got dragged up and my point was that two week out options are sometimes a sweet spot in the market. Here was it's one day trading chart on Friday.
So this morning, a Monday morning I checked it out once again. Here is how it was trading.
Now let's skip ahead to the end of the day. Here is how the same Calls are trading.
So in two trading sessions they went from a low of $3.43 up to $5.60 with no thoughts about "time-value" working against you. Here now is it's five day chart.
Option trading doesn't always have to be about making "all or nothing" trades. *** Earnings came out.
This is a good example of pre-earning option trading. Here is how they closed the day.
** Look at the hit it took on the splke down when it's earnings were released. Someone was waiting for that to happen. Now the stock will be going into neutral trading territory.

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