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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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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.
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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.

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