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Eli Lilly - Expect Morning Moves Like This. Also Costco and Carvana

I don't like writing blogs about Eli Lilly. Why? Three reasons. It's option premiums are expensive and the stock makes giant moves. The third reason is that I know next to nothing about Eli Lilly's "day-to-day" operating realities. If I guess wrong, yes I say the word guess and I am not apologizing for using it, it's game over. Look at what happened this morning, a Tuesday. It jumped upwards after the opening and then sold off. ... The Puts traded down to $12.64 on the stock's early morning blip upwards and then nearly doubled in price on the ensuing decline. A second chart here below shows that action better. Buy the Puts just after the opening and sell them a few minutes later or wait and sell them at lunchtime. It's not only Eli Lilly that moves like this. Look at Costco today. It also was up on the opening and then tanked. This series of Puts moved up in price. Finally Carvana. The same story. Up on the opening and then tanking. .. If you ar...
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$5.00 Stocks With One Week Options On Them. Nio

It's all about timing. Is this a good buying opportunity? Chinese built electric vehicles, the news coming out in this space can be exhausting. Monthly auto production numbers are what traders look at. Nio's stock is not being rewarded for this years performance. If a car company on this side of the ocean had growth like this traders would be all over it. It's all a guessing game. Let me now tell you why I like this situation.
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These Calls are now priced at $.08 and the high this morning was $.13. An uptick back up to let's say $5.06 would bring these Calls back up to $.14. What a stupid exercise to be chasing you might be thinking. I kind of agree. Yet the point remains that a small updraft for whatever reason would make this a profitable trade. Can we find guidance in it's five day chart?
What I do know is that I wouldn't want to be playing this series of options if it had only one day to go. As hours tick by you might be stuck in this waiting and hoping that bad news doesn't come out. The last four weeks were very much like this and todays action might not get you anywhere. Any strong opening in the next two days woud help. Options on five dollar stocks can be tedious to follow and depressing if they totally go the wrong way.
Not really. Yet a $.08 to $.12 move is still plausible. I am encouraged by todays action in another auto related stock.
While the two stocks are unrelated it still is an interesting event. So if you were to get into Nio would the stratetgy be to take the first modest profit you see materialize? Yes and no. If you do these kind of trades endlessly would you eventually develop the thinkings that it's it a losers game. For the most part it probably is. Let's see if this time will be different. Here is how the 5 series and 5.5 series closed the day.
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To be continued. Now this.
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Down but not out. The open interest in these options have dropped. FRIDAY MORNING.
There is no right answer to whether these options are playable. In this case getting in at $.03 or $.04 one day before these options expire was the way to go.

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