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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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One And Two Day Options. Should You Be Playing Them?

There are stocks I like think will go up with time and stocks I think are vulnerable to the downside. On one page of my screensaver (I have nine pages of names I feel comfortable watching) I watch Rivian, Vinfast, Lucid, General Motors,Tesla, Stellantis, Nio, Xpen and Carvana and on another page Boeing (I like Monday morning pops on Boeing but the tariff issue with China might be bad news for them) Exxon-Mobil, Caterpillar, Deere, Ford, Walt Disney, Uber Technologies, Walmart and Costo. One page I have which is somewhat disjointed can be found the names First Solar, Livewire (what a mess they are in)
Uniqure, Joby Aviations, Quantiumcape, Roku, Interactice Brokers, Snowflake and Pony. Look at the Pony 30 day chart.
With so much to watch how can anyone hone in on one and two day options? A better question is why not focus on one and two day options, more specifically Thursdays and Fridays when you can get the most kick for your money. Boeing, Tesla and Caterpillar will always be doing their things and are likely to trade om news specific to their companies. In a May 1st blog I wrote on Mcdonalds I showed the following one day chart. It had an earnings release which was questionable and open to interpretation. That's the kind of situation one looks for in short term option trading.
Between 12:00 p.m. and 12:30 p.m. the one day Puts doubled. Impossible to play to play you might say? Well not really if you bought Calls on Mcdonalds around 9:50 a.m. and rode them to 11:20 a.m. Having the clarity of mind to do the first trade would have empowered you to do the second trade. Notice when I talked about short term options on McDonald's and Walmart I didn't include the technique of holding options overnight between Thursday and Friday. There is risk involved in that technique which isn't quantifiable. So folks, fashion you setbelts and get for more blogs like this. Picking stocks in the higher price range tend to work better in this adventure.

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