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Netflix Options Are Humbling

The little small fish players can't play them. Especially on the morning of an earning's release. Here is one comment on what happened. Is that observation something we should keep in mind (the weakening dollar value aspect) on other soon to be reported earnings reports? The pricings on Netflix options are astronomically high on the eve of their quarterly earnings report. Here is it's five day chart. Now here we are going into a Friday morning opening fresh after an earnings release and here is how the 1275 series of Puts closed on Thursday at 4:00 p.m. Are you able to see the price they closed at? They closed at $39.75 a contract! Are the Calls any cheaper? Not really. True to form there are slightly more outstanding open Call positions than Puts. Now image this. If you own a block of this stock you can sell the Calls and Sell the Puts simultaneously. If the stock closes up ten dollars on the day the Puts expire worthless and that money now belongs to you. Then you wou...
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A Three Day Look At Playing The Grind Of Walmart Puts Starting With A Monday Perspective.

The markets are flat and it's trending up after lunch.
Can you play it for the downside? It's Monday with these one week options so it still gives you lot's of time.
To be continued. Now this, the closing of the day reading.
No such luck in catching a Monday sell off. Now Tuesdays action.
Not to much to get excited about. Now Wednesday in the first hour of trading. The ride so far has being exhausting. Here is what is now happening.
Now this a few minutes later.
Are you able to see how painfull this ride is compared to the in and out blog I just wrote on Boeing? If you look at this chart you might expect a rebound to now happen so I would just get out.
Here is how they are trading eight minutes later.
This shows us the importance of reacting to short term drops when you see them happening. There is a reason why this activity is called day trading. Trading Walmart options can kind of be a grind however the bids and asks are tight and the liquidty is there. Had you got in on the closing on Monday you would have made a profit. Other options are easier to play.

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