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How To Avoid Time Value Traps With Last Week Options.

This blog is not going to be an exhausting study of this topic. I just want to show you a few charts found in recent blogs and comment on which ones seem to skirt the issue of "time-value-concerns' and which ones don't. 1) Avoid Thursday at the close Call options. In this case Thursday is the second last day of the above chart. If you guess the wrong direction on the close it's going to be game over on Friday when the options expire. Thursday at the close on options that expire the next day are the biggest time value traps you can buy into. If the stock moves in the wrong direction it's game over. 2) Ford on a Monday going into Tuesday. On this chart April 13th is a Monday and Tuesday is the 14th. Can you see Ford closing strong on the close of the 13th? It would make sense to get in on the stong closing because these Calls would still have four trading days to recover if Tuesdays opening was not all that spectacular. 3) This time it's Caterpillar and it...
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Autonomous Air Taxis Or "eVTOLs"

These are not new companies and these companies are known to beat their own drums. Making money for these two companies is not a short term mandate. Look at the three I am mentioning.
Now their three month charts.
When one company has good news it tends to be a victory for all three companies.
.............
I often talk about how exciting it is to play options on stocks in the five and ten dollar range. Here are three examples. But first what are the markets doing at 2:10 p.m. on a Monday? They are down.
Here is this week's "end-of-the-week" Call options on Acher.
Now unusual Machines and Joby.
All of these option series were caught off guard. In all fairness trying to catch moves on these stocks with a one week time frame is a losing game. The thirty day time frame is more appropriate. Spend some time reading about all three of these companies. Stocks in this price range are somewhat speculative however all three of these companies are working on creating aviation history.

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