Featured

Boeing - If It Doesn't Go Your Way Just Get Out.

This could be an exciting opportunity. ...... Now its one day chart. Ay 2:49 p.m.with the DJIA average up strongly the stock is still struggling. This could be another one of those cases where it is a good time to get out (see our Exxon blog today) for the same advise. Wednesdays can be turn around days for "one-week" or in this case "three-day" options but if things are slow in happening it's just best to bail and never look back. It's called day trading.
Post a Comment

Chasing The High Volume Trading Stocks. "Big Bear Ai"

Big Bear Ai (BBAI). Odds are you never heard of it. Last week it closed at $6.06 up $.38 cents. It's a military Ai play.
Look at how it traded in the last five days.
Look at the volume of shares traded today. Almost 84 million shares! That's not a mistake.
A junk stock with no earnings you might say on the verge of having a meme stock status. Yes. I am embarrassed in a way to be talking about this stock when I normally write blogs on trading options on stocks like Deere. With Deere some series of their options only trade like 19 contracts on any one series of it's options on any given day. Should option traders be trading in options on stocks in the $5.00 and $6.00 dollar price range? Sooner or later this stock might crash and burn. I shouldn't really be saying this. One of the things I do know is that this company doesn't even generate profits yet. Also, back in May this stock was only trading in the $2.50 range. Is it's story feasible? There are massive amounts of share trading in this stock but not so much so in their options. Here is an example of what I am talking about.
What does that tell me? It tells me that there is a maturity to the markets from the sense that market traders have a preference for trading this companies stock over trading in it's options. The mindset of market traders is one of why try an outguess what is going to happen with this stock over the next four days when in the bigger story of how this company is going to evolve will take many years to play itself out. It's track record of "choppy trading" has made the game to dangerous to play. That's my take on it anyways. Tuesday morning just less than an hour into the trading hour. The DJIA is down big time and these Calls are holding steady.
Now this. The D.J.I.A was down 634 points at 10:09 a.m. this morning and now at 3:09 p.m. it is down only 276 points. Look at how the 5.5 series of Calls are now trading. They have doubled in price from the previous days closing price!
I apologize for adding yet another zinger of a stock to try and follow. Good luck.

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