Featured

You're Not Playing Tesla, You're Playing The Markets. Get Use To It.

The markets crashes on Monday morning after a disastrous friday afternoon sell off. The D.J.I.A. was down last week 1.1% on the week, the largest weekly decline since November. My advise is to take a vacation from option trading for a week or so. Then there is Tesla. Tesla rebounded today, a Monday after dropping a chunk in the first forty five minutes of trading. But wait, at 10:30 a.m. most market observers were congratulating themselves for sitting on the sidelines. Now this, here is how the 382.50 Tesla Calls traded on the day. I will do a follow up on this blog tomorrow and show you the closing interest at the end of the day. If it is very low, which I suspect it will be, it will further illustrate my point as to how Tesla can be a good interday trading vehicle. Now this. Exxon also dropped in price at 10:30 a.m. and dropped again at the close. Look at how the 150 Calls closed on the day. Flip a coin, it could go either way. If you look at my past blogs on Exxon in the last 3...
Post a Comment

A Continuation Of The Theme Of Playing One Day Options On Super Expensive Stocks And Tesla

Put options on Costco with two days to go in their trading life were scrutitized in my last blog. This blog on Netflix will be quick and eye opening. Here is it's chart yesterday which was a Friday.
At 9:31 a.m. Costco was trading at $1,265 up from the Thursday close of $1,257. That's an $8.00 jump. Now look at these two printouts.
The "out-of-the-money" Puts! Any ticket purchased on a "one-day" slightly "out-of-money" Put just after the opening bell on Friday paid off in spades. So few traders are catching this action. One final Friday development. Imagine owning "out-of-the-money" one day Calls on Tesla yesterday. Twelve dollar one day moves on Fridays create magic for one day option traders.
Tesla option trading over the past five years has attracted the masses.

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