Featured

Lucid. Options On $6.00 Dollar Stock With Two Days To Go Are Difficult To Trade

What do you think about this chart? It's one of those falling of a cliff charts. It's a Thursday morning and it looks like this stock is kind of in a downdraft. Look at my most recent blog on Rivian. The bad news on Lucid could be a hangover effect caused by Rivan's one day prior bad news story. It was talk about Rivian going back to the markets to raise more money even though they were starting to lose less of it. It was a good-news, bad- news story. A story which would take a few days for the markets to digest. Let's now look at two series of Lucid's Calls which expire tomorrow. We now find ourselves forty one minutes into the market's opening trading action. The 26 series of "out-of-the-money" Calls that expire tomorrow are trading last at $.03 cents. ... Now this. Now look a this small rebound twenty five minutes later. .. Here is where it gets a touch confusing. The $5.50 Calls which were once at $.22 cents are now $.30 and the $6.00 series of...
Post a Comment

History Tells Us That Pfizer Might Sell Off

Here is how Pfizer traded over the last five trading sessions. $24.00 to almost $26.00 is a large move for this stock in such a short period of time. That doesn't happen very often.
Now this, a look at how this stock has traded in the last three months.
Here is what this one series on "in-the-money" Puts that expire on Friday are now trading at . Today is Wednesday.
So what's going on? Well there is one drug stock that is leading the pack today and helping to drive up the prices of many of the stocks in this same sector. Eli Lilly is on a bit of a terror.
Now the same Pfizer Puts on Thursdays opening. At the nine minute mark on the opening the low and high on these options was $.25 - $.33 .
Then at around 10:00 a.m. Pfizer moved up a touch. Stocks often go up in the first hour of trading only to lose their gains as the day goes on. That's what happened this time. You can see that move upwards on the one day chart below. The Puts dropped down to a low of $.08. Now here is how they closed out the day. These options have one day of life still left in them. What a tough game to play.
Now here is the most important part. Look at how these Puts traded 'minute-to-minute' on the day.
Getting in around 10:00 a.m. and out anytime in the afternoon was the best way to play it. 10:00 a.m. was exactly the top of the day.
It helped that the markets crashed on the day.
Catching this one would have required precision. **** Now a look at Friday mornings action.
$.10 options can suprise especially on days of large market selloffs. *** If you look at my Pfizer blog last Friday you will seek the same rise in price on $.10 Puts. With Pfizer the action started at 1:30 p.m. and ended at 3:30 p.m. last Friday the markets closed down 797 points. It takes these massive declines to make the this $.10 put option trick work. Did i catch it? No. I went swimming in the afernoon. Somtimes option traders need time out.

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

News on Polestar , Lucid (Trading After A Reverse Stock Split) Plus Ford News And Vinfast

Image
Look at the one year chart on Polester. Now it's one month chart. What's going on? It's confusing. It was down $.36 cents on the week. If you want you can spend $.20 or $.25 on Puts and hope that the company goes under in the next five or six months. They recently raised more money by releasing more shares so it's running out of options. You can't run at a loss forever and this news will most likely scare off potential new car buyers. This actually is a low number of outstanding Put options. The consensus seems to be that it is not game over yet. Lucid started trading this week on a "one-for-ten" reverse stock split. Here is its one week chart. It was down $1.39 on the week. It's also going to struggle. Both of these stocks have challenges ahead. On a more positive note here is a chart that looks kind of perky. Ford on the week. The stock was down $.03 cents on the week and it was the 3th highest in share volume trading on the NYSE. It appears...
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