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Nvidia Options On A Monday Morning.

Itching to find something to do in the markets on a Monday morning? What about Nvidia options that expire at 3:00 p.m. You are gauranteed that the liquitity found in these options will be great. The markets are opening somewhat sideways with some strenght in the Nasdaq as shown as of 10:20 a.m.. The real action happened in the first few minutes of trading which is commonly the case. Look at this early morning readout just ten minutes into the trading. ... What do we see happening? Focus on it's chart. Nvidea closed at 215.62 and opened at $215.70. Then it moved up slightly like it did on it's previous Thursday's opening and to a lessor degree on it's Friday opening.( This is a five day chart chart as of 10:45 a.m.). In the very first two minutes of trading the Puts slipped down to $.70 cents. It was a case of buying in on the slight upward spike in the first minute of trading. "Slight" but still enough to cause "Option makers" at that time point i...
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Ford Options On A Monday Morning With The Markets Expected To Open Slightly Lower

This is a simple set up. Can you play the stock Ford on the upside and make any money? There are no earning reports or anything crazy expected to happen this week. Nor are any monthly production level reports expected. What sometimes throws the stock off are recall announcements. It is afterall Ford. That's a wild card. Last week Ford was down two cents on the week and was the fourth most actively traded stock by share volume on the NYSE. Here is it's five day chart.
Now let's look at it's this week's 13 series of Calls and take the perspective of buying a block of twenty-five contracts at one time. That would cost $28.00 times twenty-five. Often we see blocks of 25, 50 and even 100 contracts trade at one time. Here we are ten minutes into the opening markets. Monday mornings are usually not the best of times to be purchasing one week until expiry Calls. Afternoons present better buy in opportunities. That's just the way it usually works.
In past blogs I have referenced watching Ford options move in price is like watching paint dry on a wall. In these somewhat volatile markets that is no longer the case. Bad news already by 9:56 a.m. Ford is off in price.
Can you already feel how this exercise is becoming a waiting game? It's not anything like buying Tesla Calls on a Friday morning where the action can be explosive. There was news at 10:12 a.m. Here it is.
The stock is selling off more.
In reality the benefits of such an arrangement with Amazon will takes many quarters to unfold. Now here is how Ford closed the day. Their Calls sold off half price!
.....
Here is how the DJIA closed.
. It was the Puts that were the star of day. Go figure from looking at the opening chart.
Now here is an interesting chart showing when the action in todays Puts started to kick in. The ride started at 1:00 p.m. mark and ended around 3:00 p.m.
In my blog about Pfizer last Friday, a day the DJIA dropped 797 points in one day the same type of $.10 Put action happened. In that instance the action started at 1:30 p.m. and ended around 3:30 p.m.. Is this trading action a trend on days the markets take a real grubbing? I will continue to comment on this series of Calls for the remainder of the week. Can you see how such a simple blog can suddenly get so complicated? Now Tuesday's action. Look at how look low the Calls traded down to. There was a bit of a rebound in the markets on Tuesday afternoon.
To be continued. Now Wednesday.
On Thursday there was talk of a fire.
***** A look at the action going into Friday morning.
Here is how the stock traded in the last five days.
Things were out of focus. Let's also watch the 12.5 series tomorrow with only one day of trading life left in them. Here they are at 12:24 p.m. on Friday.
Fires don't help the cause.

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