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Walmart - Trying To Outsmart The System

I don't know if it is going to work. Buying a Call and an offsetting Put on the same stock with the same striking price with two days of trading life left in them. The logic is to sell one of the two if it gets a double or more, (hang on as long as you can), and earn a free ride in an offsetting change of direction. Look at this five day chart and you might see how this train of thought developed. Now a look at one Call series and one Put series. These options both have two full days of trading life left in them. Here is it's five day chart which looks like it might break out. It really takes a share price move of over $2.00 quickly, to make this a fun experience. Options priced in the $1.00 range can suprise. It also could be a total bust. Let's follow this action and see how it all plays out.Thursday morning. Here is the early morning action. The Puts really performed. Can you sell out of both postions and take a profit. Hold that thought. Might it go lower? Here is ...
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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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