Featured

"End Of The Day" Friday Option Trading On Tesla

Back on April 2nd I did a blog called "Two Hour End Of Week Option Trading on Tesla". In that blog it was noted that Tesla dropped in price starting at 1:30 p.m. and 42 minutes later it was $5.95 lower in price, approaching the "must-get-out" at 3:00 p.m. mandated option deadline. Put option buyers getting in around 2:00 p.m. did well on their investments. (The stock was down $20.67 on the day). Here was it's chart on that day. It was a Thursday with Friday being Good Friday. Now let's fast forward to today's action, it being the following Friday. Tesla options had a tough start to the day. Here an example of what I am talking about. Look at the 347.50 series of Calls at 12:34 p.m. Are you able to see how they are down in price on the day? Now this. A look at how these same options closed out the day. They charged back upwards towards the close. The $140.00 option price we were looking at below is actually a 4:00 p.m. readout. This chart shows Tesla ...
Post a Comment

Waste Management Calls. A Boring Stock To Play Options On. With A September 6TH Update

There is money in garbage. Trucks and trailers and landfill sites and garbage hauled hundreds of miles away like clockwork. Money, money, money. This stock is always going to go up. Buy it, hold it and if it drops just hang on to it and watch it come back up again. Yes there are options on it, options that trade in one month intervals. This month's options series expire tomorrow July 18th. Here is a look at how they traded today.
Only two contracts traded on it today and there are only 200 contracts in total outstanding. One of the things that means is that you are at the mercy of the option makers when it comes time to buy or sell. When buying you might be forced to pay closer to the ask than the bid and when selling you may be forced to pay closer to the bid than the ask.There are no 215 Calls on it, only the 210 series and 220 series. Yes there are both Calls and Puts. Now a look at it's three month chart.
If it's such a great company, why is it now down in price? Where will this stock be trading at three months down the road? Now this, a look at what one series of it's Calls are now trading at. These are Call options that expire on August 15th. Only two contracts traded on it and only 200 contracts remain outstanding.
These Call options are already $5.58 cents "in-the-money". What about these ones now three months out?
Just to break even the stock would have to go up to $232.50 on the day these options expire. It could very easily do that. Last week however it traded down $1.16 on the week. Sometimes these options can be very slow to move. It's not like playing options on stocks like Tesla or Boeing. Now this.
If their earnings report is going to be good you might see the stock now start to nudge up in the next two weeks. Some people closer to the action might be better aware of what could happen. July 31st is not that far away. For that reason alone these options might be something to consider. A strong earnings report would do wonders for this stock. Do I like Waste Management options as a trading vehicle? Not really. It's not like a Tesla or a Costco which has news on both out everyday. The bottom line is that knowing about Waste Management options is kind of a distraction. The low liquidity doesn't help the cause for trading them, yet that is not really an issue if you play them with a longer term horizon. They will always be there. Start to follow them if you wish. I will check back in on these October Calls in a few weeks time.** A Sept, 6th update. They have done nothing. Well actually they have dropped over half price in value. Here now is it's 90 day chart.
Waste Management has little international exposure and perhaps why the stock's price is currently not doing all that well.
I will revisit this blog going forward.

Comments

Post a Comment

Popular posts from this blog

Waiting For A Drop On The Opening On Bad News - Eli Lilly

Image
Here is the bad news. The company is Eli Lilly. How bad is this news? Well look at it trading in the premarkets. So what do I think? I think the news is a setback of sorts, but not really all that bad. The stock is going to open lower, that's a given. It's like trying to play Boeing after an announcement that an airplane has crashed. So the stock is going to crash and it might have a small rebound and then it's going to slide down some more. A test of sorts will happen sometime in the afternoon. It might stock falling but then where will it go from there? The best case scenario is a recognition that investors got it all wrong and the stock ends up flat on the day. Yet there might be more of a downward dumping of the stock on the close followed by a selloff on tomorrows opening. Should option players be jumping in to play the upside on next week's Calls? That is the question. Here is a look at Boeing on the days after a crash. Day two after the crash was equally as ...
Read more

A Fireside Chat - One Year Options and Thirty Day Options. Which is Better?

Image
Some say to think small, not big. Trying to play Disney options is thinking big. It is a stock slightly out of favor. If we start with it's a three year chart, we will see it is down by about 50% over that period of time. Now it's one year chart. If the stock can break 110 in early 2024 the sky is the limit. It does have a lot of moving parts so anything could happen. Look at these Calls options one year out. One year in options buys a lot of time.They look reasonable. If the stock ever inched up to the $105.00 price level in the three or four months these options would jump up in price by about 50%. Even more if they had really good news. Yet it's the "what-if" aspect of the equation that castes such a trade in doubt. "What if" stories just don't cut it. There are to many variables in play. Then again, why are we even thinking of long-term Call options after a December's rally? Let's switch gears. If consumers are out spending for X-ma...
Read more

News on Polestar , Lucid (Trading After A Reverse Stock Split) Plus Ford News And Vinfast

Image
Look at the one year chart on Polester. Now it's one month chart. What's going on? It's confusing. It was down $.36 cents on the week. If you want you can spend $.20 or $.25 on Puts and hope that the company goes under in the next five or six months. They recently raised more money by releasing more shares so it's running out of options. You can't run at a loss forever and this news will most likely scare off potential new car buyers. This actually is a low number of outstanding Put options. The consensus seems to be that it is not game over yet. Lucid started trading this week on a "one-for-ten" reverse stock split. Here is its one week chart. It was down $1.39 on the week. It's also going to struggle. Both of these stocks have challenges ahead. On a more positive note here is a chart that looks kind of perky. Ford on the week. The stock was down $.03 cents on the week and it was the 3th highest in share volume trading on the NYSE. It appears...
Read more