Featured

Is Tesla A Good Robot Play?

There's going to be pushback if Musk decides to turn his auto production lines into robot making production lines. That's a new fear. It is also noted that used Teslas are dropping in value quickly. Tesla was down in price $5.62 last week. How is Musk going to make this new venture work? Might his first generation of robots like his cybertrucks quickly become obsolete? If you think about it, maybe existing shareholders are already lightening up on their stock positions knowing that a bumpy ride could soon be on the horizon. Now a new topic. How much do the "three-month-out-Calls-and-Puts" on Tesla cost? That's a fair question and here is the answer. Now we also need to look at how it has traded in the last three months. The stock is down about $60.00 over that period of time. Anything is possible with these three month out option series. Now this, Tesla drops on the Monday February 23th opening. The markets are having a bad day. Look now at what the May 26t...
Post a Comment

Boeing Had An Unexpected Jump Thursday Morning

Would this be a good time to purchase it's Call options that expire tomorrow? It's the dreaded "one-day-option" topic once again. It's 3:19 p.m. on a Thursday afternoon. Here are two different series to be looking at. One series is "in-the-money" and one series "out-of-the-money". Why am I looking at these two series of Call options? Well, on the two different Boeing charts below you will see the strenght of a Thursday morning price jump. If it jumped once it might do it again? When you see the chart below you will see how explosive this jump was .
Here is how the markets are doing at 3:21 p.m. on Thursday. I don't mind the markets closing on a low note. Why? One reason is that on Monday the DJIA dropped 514 points on the day which everyone shrugged off as being almost normal.
Now Boeing's five day chart which shows on the far right of the chart (the last day of it's five days of trading) the Thursday morning pop I am talking about.
The next chart show exactly the one day chart of Boeing's trading action on Thursday minus about the last 10 minutes of actual trading time. It shows even better the morning jump I keep on referencing.
One of the reasons I like this situation is that with a 300 point selloff on the day the markets could decide to rebound on the following opening. The strenght of a stronger opening would boost this stock and many others upwards. Let's see what happens. Now Friday's action.
It jumped up shortly after the opening and the two series of Calls I was tracting did very well.
The Calls that were "in-the-money" went from a close of $260.00 to $445.00 after hitting a high of $565.00 and the "out-of-the-money" Calls went from $110.00 to $200.09 after hitting a high of $300.20. One final note. Boeing dropped five dollars a share last Friday morning. Boeing option trading can suprise.

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

Another Blog On "Vinfast"

Image
There is so much to read about this companies history online. Do your own homework. Their success is not dependent on what ends up happening with their sales in North America. They are nimble. There are plenty of auto factories all over the world now for sale they can acquire. They have dabbled in Australia. Having access to money to keep going doesn't seem to be their problem. Rivian also seems to enjoy this advantage. Vinfast is currently building a new plant in India which could employ thousands of people. That's an emerging new market. New relationships are being built and new investors will be coming onboard. Are option players looking at this stock? Not really if we look at these "one-month-out" Calls. What about Calls further out? What about next January? Here is a look at the three and four series of Calls. Nobody seems willing to bet Vinfast Calls. Now this. Here are two snippets taken from a blog I wrote about this stock back in early December of 2024. ...
Read more