Featured

Pfizer - Five Day Options Starting On A Monday Morning.

Monday December 29th The DJIA dropped on the opening. Not a massive drop, just like 250 points. So I am looking at Pfizer again, this time to the upside. It's only down $.07. The option volume is healthy which is a good thing. If the markets rebound these options will be super sensitive to a rebound. It's only Monday and these options have all week. By waiting until the afternoon hopefully morning jitters are behind us. Now this, a look at it's five day chart. Charts are important. Now a 2:05 p.m. update. First it's current one day chart and another market update. The markets are still struggling. Now this at 2:09 p.m. Now it's final Monday closing reading. The markets never rebounded. So what next? Pfizer the following morning. These Call options are now "out-of-the-money" and are super sensitive to the stock's lastest two cent drop. Here is it's chart. The open interest in the Puts is now double what it is in the Calls. The nice things ...
Post a Comment

Barron's Front Page Featured Articles : What you Really Need To Know

Let's talk briefly about a couple Barron's featured articles. I like reading Barron's weekly.
Back on November 3th when this article came out the stock was trading at $204.55. Now it is at $194.52. What's that, like a 5% drop in only two weeks? In the article it states that the company isn't expected to make profit this year, marking seven consecutive years of losses. No company in the S&P 500 Index it goes on to say has lost more money since 2019 than Boeing. It then says "Boeing is back". That's a strong statement. A cargo plane crashed just after this report came out. Another airplane overseas also crashed only recently.
Now this. Chatter about old airplanes still in service.
Oh well, Boeing is not really a sure thing but it does have a large backorder for new planes. It can't build them fast enough. Yes they say that the stock is a buy but so far their timing is off. Now lets take a look another cover page Barron's released on July 28th. This time the stock is Disney.
Their feature article/recommendation at that time is that Disney is a buy. Back then it was trading at $121.42. Now it's trading at $105.80. This week it had some bad things happen.
In all fairness Barron's sometimes make good Calls. Case in point is it's recommendation on Nov 25th of last year to buy the stock "Google". On it's cover page at that time it says the stock should go up 50%. That proved to be a good call.
.....
What does all this have to do with option trading? Not much.Tesla was down $25.17 last week or 5.9%.
I was busy on Friday talking about one of it's Call series rising from $2.81 in the morning trading session to a high at one point of $19.60 on the day. On Thursday the same thing. Pfzer a $25.00 stock was up $.63 on the week or 2.6%.
On Thursday I was busy talking about it's Puts rising interday from a low of $.08 to a high of $.40. My point is knowledge is power and the more you read about individual stocks the better you will be in playing them. Yet having said that, what you must also realize is that option trading and stock trading are two totally different animals.

Comments

Post a Comment

Popular posts from this blog

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

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

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