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

Costco And Dangerous Fruit . It Was Like Robbing A Bank

Let's zoom in on a dangerous Friday afternoon option trading situation. Do you want to try and rob a bank? Look at this chart.
It's zig-zagging and it's Costco is down $2.02 a 1:42 p.m. on a Friday afternoon. It's one week options on it that expire at 4.00 p.m. actually expire at 3.00 p.m. for retail traders. Might it jump a couple of dollars or more in the next 78 minutes? That's the bet to rob the bank. I like it. Past blogs have talking about Costco moving $25.00 and $35.00 dollars in one day. If your ahead of the game from trading all week you can afford to explore this situation. Here now at 1:40 p.m. are it's three series of "out-of-the-money series of Calls".
......................................................
..........................................................................
So what ended up happening? Costco reained the 42.00 it lost and shot up another $4.00. I will now only show you one of these series of Calls and how they were trading at 3:00 p.m. which was the get out deadline. They went from forty-four dollars a contract to four hundred and thirty five dollars a contract!
Here is it's closing one day chart. You can see it jumping up at the end of the day. It's Costco.
What an amazing opportunity. ** a special note. Friday afternoon option trading most usually just holds flat. The action I am describing is somewhat abnormal. * A quick part two for the more advanced readers. A comment on the 3:00 p.m. deadline the trading houses impose to get out by 3:00 p.m.. You don't really have to. If you don't sell out by that time they will eventually just sell you out "at-market". Sometimes they will call first or at least try to call you. You don't really have pick up. Sometimes if I am caught in this situation and want to hang on a little bit longer I will submit just prior to this 3:00 p.m. deadline a sell ticket order slightly above the options current selling price. That way they know I am tracking the action and they might cut me some slack. In this instance Costco continued to rise. This next readout shows you that the 965 Series of Calls did actually reach a high of $501.00 on the day.
Cheers.

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