Featured

What Happens When You Get Four Stocks All In The Same Sector Going Up In One Day On A Monday?

First of all it usually means something good is going to happen in the sector. It doesn't really matter what it is or why. This time it's in a sector we can call "used vehicle car sales". Some option traders trade exclusively in this sector as you sometimes see blocks of 20, 25 or 50 contracts trade at one time. Well, not so much as of late. It's big "retail-money" or trades made by wealthy individuals. Why spend millions of dollars building up a car dealership empire when you can follow and profit from what is happening in the industry just playing stocks and options on it in the right direction? That plus the advantage being able to take holidays when ever you want. Here they are. 1) NOW HERE IS A CHART OF CARVANNA. I have done recent blogs on this one. Here is it's five day chart. Is everyone hoping for interest rates cuts? (Jerome-Powell-Jackson-Hole Annual Summit) to come later this week, just another speech by some old man). If rate cuts star...
Post a Comment

Boeing Came Out With Earnings Last Week and The Potential Of Playing Calls On It This Week

Here are it's earning details.The company is still losing money but a lot less of it.
The stock did well last week on that news. Well actually not really. It sold off in price but they it took a couple of days to sort out the fact that losing less money than it previously did was actually a good thing. The Trumph thing with China has also put a scare on things until the narrative got sorted out that Boeing still has the rest of the world to keep selling their planes to. Here is it's five day chart. It moved up nicely on Thursday and Friday and ended up closing out up $16.05 on the week.
What do charts like this do after they crest upwards and go sideways for a day? They sometimes keep moving up. Here is Monday's closing prices on two series of Calls that expire this Friday. Both might benefit from a pop tomorrow.
The the 192.50 Calls look like an impossible dream. Some traders pride themselves in trading in these types of astronomically "out-of-the-money" positions. If they wiggle down a bit in the first fifteen minutes of trading I might consider jumping on board. I especially like the 192.50 Calls for an upward ride or the 192.50 Calls one week out on a dip. The markets closed today (a Monday) down a touch.
I would play this game on a Monday at the close but not on a Tuesday or a Wednesday. Short term "out-of-the-money" options which expire in four days quickly lose their shine by Wednesday or Thursday. Now the Tuesday opening markets.
Once again, purchasing "out-of-the-money" Calls can make you look foolish at times. Now this, a look at what has happened a few days later on Thursday. The same two option series again that now expire tomorrow. Good news came into the stock.
:::::::::::::
Look at the volume of contracts traded in the 192.50 series of Calls and also look at how low they sank to on the previous day. In contrast the 185 series of Calls were something with far less risk. Will tomorrow's action be crazy? Check back to find out. Here are the answers. "Boeing" had a good week again.

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 slightly 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-ma...
Read more