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Costco Options With Two Days To Go. Something To Consider , As Strange As It Might Sound

First, Costco is down $44.79 over the last ten trading days. The company sells food and everyone needs to eat. The chart looks like it might now want to rebound. Down $44.79, it's crazy that it could sell off that much in such a relatively short period of time. What about other stocks in this price range like Netflix? Well the Netflix stock is priced at even a higher level. It's at $1,257.00 today and yesterday afternoon it was at $1,213.00. Yes, today it was up $31.30!. My point is high priced stocks can make big moves and that's what makes Call and Put options on stocks like this so potentially rewarding. Most people would never consider trading in Costco options. I get that. More on that later. Now back to Costco doing so poorly as of late. It's now Thursday morning before the markets are open and here is a look at it's "at-money" Calls and Puts. Notice the light volume of the "open interest'. The two numbers reported here are 480 and 358. Whe...
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Nvidia Calls And Last Day Friday Afternoon Option Trading

First, the five day chart on Nvidia.
Look at the volumes of option trading in these Calls and Puts at noon on Friday. These options expire today. Now here is how the DJIA is doing at 12:01 p.m.
Look at the huge number of Call options traded this morning.
With markets up and the DJIA down what would logic tell us to do? Buy the Puts. Look at these two Put printouts on Puts that expire today. Look at how cheap the "out-of-the-money" Puts are. Experienced option traders know that the risks in buying these is high, to high to take serious. What's more inticing are the "in-the-money" Puts. In this case they are the 167.50 Puts.
Let's now look at it's current one day chart at 12:15 p.m.
Had you looked at the 167.50 Puts around 10:40 a.m. they were half the price they are now. Sure it's all somewhat of a guessing game however I want to point out than with one day options the timing of inflection points, meaning stocks making reversals on the day usually happen in the mid to late mornings. What happened here was all so typical. (I do get feedback on what I write about and I do know most readers who follow me, or try and follow me dislike this topic of one day trading. What I should be working on is a list of top ten things most short term traders should learn to recognize. What I am describing here would surely fall into this category.) In any event, let's see how this situation plays iteslf out. Now a 2:06 p.m. update. 3:00 p.m. is the deadline to get out.
The Puts are up $.31 cents or thirty one dollars since 12:01 p.m. Now the readings at 3:00 p.m..
Anyone buying the 187.50 Puts at noon for $1.28 could be selling them for $2.00 at 3:00 p.m.

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