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Walmart - Trying To Outsmart The System

I don't know if it is going to work. Buying a Call and an offsetting Put on the same stock with the same striking price with two days of trading life left in them. The logic is to sell one of the two if it gets a double or more, (hang on as long as you can), and earn a free ride in an offsetting change of direction. Look at this five day chart and you might see how this train of thought developed. Now a look at one Call series and one Put series. These options both have two full days of trading life left in them. Here is it's five day chart which looks like it might break out. It really takes a share price move of over $2.00 quickly, to make this a fun experience. Options priced in the $1.00 range can suprise. It also could be a total bust. Let's follow this action and see how it all plays out.Thursday morning. Here is the early morning action. The Puts really performed. Can you sell out of both postions and take a profit. Hold that thought. Might it go lower? Here is ...
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A Follow Up On The Deere Crash

Let's quickly get up to speed. Here is a chart on Deere at 1:08 p.m on a Thursday and a look at the $480.00 series of Calls which expire tomorrow. Note the stock at this point in time is down $35.12 on the day on a bad earnings report.
Now this, a look at one series of Calls. The 480 series of Call options. They look cheap. In a recent blog (well just last week) the stock Eli Lilly was in the exact same boat. Here is it's 30 day and 5 day charts showing a rebound after a steep decline.
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We are talking about Eli Lilly crashing in one day and then moving up after that like $50.00 in just five trading sessions. Isn't it true that stocks after a major fall like this tend to take a couple of days to rebound back up again if that's the direction they decide to go? Based on this occurance isn't it possible that Deere could sell off some more before the end of today's trading day? Here is a look at the 480 series of Puts that expire tomorrow. The time now is 1:39 p.m. (on a Thursday) and they are trading at $475.00 per contract. Back at 1:09 p.m. they were trading at $431.00. .
Guess what they closed at at the end of the day and what do it's one and five day charts look like?
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So the Puts closed the day at a price lower than they were trading at back at 1:09 p.m.. Usually further weakness comes into a stock in the last few minutes of trading on a day of a major decline like this.This time that didn't happen. Remember also that the 480 series of Calls we were looking at were trading at $431.00 at 1:09:00 p.m.? Here is what they were trading at on the close, $4.45. Might they now double in price on the opening and then sell off as quickly as they went up? That would take about a four dollar jump on the opening bell to create the needed excitement. It will be a Friday trading session and if you are playing one day options anything can happen. With this stock in this situation I don't want to be in any part of this action. I think in this case the risk is to high. Here is the closing reading I am talking about.
So what's the bottom line. If you made money on today's sell off you can afford to speculate on the direction of tomorrow's action. If you didn't make money on it just forget about it. Well don't totally forget about it. In three months time Deere will have another earnings report. Maybe you can apply what you just learned here to that scenario. *** Now Deere in the premarket at 8:10 a.m. on Friday morning. It's still a case of anything could happen.
So what did end up happening on Friday, Deere kicked back up. The Call options we are looking at doubled.
Here is a recap of Boeing's five day action.
What an exciting week.

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