Featured

Netflix And It's Ten For One Reverse Stock Split

No lower is Netflix a $1,000 stock. Now the common man can buy it. That's the new logic. Netflix was up $8.51 last week. Perhaps the street was buying in last week on the hopes that a new wave of buyers will be buying in this week. Now this. Now this weeks Call options. Whatever happens it's not going to be a comfortable ride. Maybe it could go both ways. To be continued.
Post a Comment

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 report 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. 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 thirty and five day charts.
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.
I past blogs I have referenced watching Ford options move is like watching paint dry on a wall. 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.
To be continued.

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

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

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