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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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Deere Is Coming Out With An Earnings Report On Thursday. It's Wednesday Afternoon.

Here is how the 510 Calls and Puts are trading. The stock is currently trading at $508.84. Last week the stock was up $9.39 cents.Last week's Calls paid off nicely. Earnings come out before the market opens tomorrow.
Now here is it's five day chart as of 2:00 p.m.
Now it's thirty day chart.
Not much action. Both the Call and Put options are expensive. They should be. Deere has a history of moving wildly on the release of earning reports. Here for example is how Deere traded on the day of it's first quarter earnings report earlier this year and what was said at that time. The spike in the chart is the day the earnings report was released.
Now back to today's situation. Notice the 510 Calls for the day are up on the day. It looks like the street is looking for a bounce. What do the $517.50 Calls and the $520.00 Calls look like at 2:23 p.m.? Notice the volume in the Calls is the same as it is in the Puts and that fifteen days ago the stock was trading about $15.00 higher in price. This tells me that the stock will have no issue jumping back up to that price range if the earning report on the opening is good. But wait, we have the tariffs and everything is changing. Farmers are getting hit. Who knows what's going to happen on the opening tomorrow. If the stock goes up it's going to be vote of confidence for the economy. What are the odds of that? Time out. People see options as being dangerous trading vehicles. They are. All options are tough to play.
Yes they are somewhat expensive but these Deere have a part two aspect to them as they don't expire until the following day. A seven or eight dollar jump on the opening would help to move the needle a touch on both the Calls and Puts. These are the riskiest trades in the world to do. This is going to a roller coaster ride. Rides like this happen four times a year. Learn to look for them. Now this.
..............................
Do you know what this is? It's the premarket trading and the stock is down. Let's go back to a look at the Puts yesterday afternoon.
Nobody is playing them. Now a 9:10 a.m. look at the pre-markets.
The morning action has now begun.
Option traders can sometimes find themselves in another world. My next blog might follow up on this same situation.

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