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Costco At The Start Of The Week - With Rising Oil Costs.

Recent Costco blogs have illustrated how "time values" get eaten up the closer they get to their expiracy date this Friday. Here is a five day chart mid morning on a Monday. Now this. The Costco 1,000 Call option. Costco is down $9.23 at 11:51 a.m. to $999.20. Might it rebound back up again? Now a one day chart and the closing reading on the 1000 series of Calls. This afternoon move was nothing. Let's watch and see what happens tomorrow. This is an expensive game to be in. Costco can easily move ten dollars or more on any morning. Here we are again on Tuesday morning at 10:00 a.m. Notice the very low volume of trading. This is a high risk/ high reward situation. To be continued. Now Tuesday and it's closing reading. It is off on the day $5.58 and off $6.69 on Monday. It's easy to get caught offside on these options. Now here is it's five day chart on Wednesday morning. The stock and the Call options are down again. Higher energy prices are now a new expe...
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Exxon Drops Big On A Late Monday Morning

Is now a time for a reversal? When Exxon drops like this on a Monday morning it has the weight of the world's problems on it's shoulders. If it dropped double this amount you would know something is actually wrong. Here is it's five and one day charts.
So anyone could recognize this. Why pick this time to look for a reversal? What happened to the support level at $118.00? Does the $118.00 level look like a stretch to far away? Now this. We are hoping for a pause in the downward action and hopefully a slight rebound. A rebound to $118.00 would work wonders. Here is it's 11:39 a.m. readout.
A further deterioration downwards would be ugly but these Calls don't expire until Friday. The low volume of trading tells us that experienced option traders are not looking for any sort of a quick rebound. Let's see how this plays itself out. Now this, a 2:00 p.m. readout.
Now a 4:00 p.m. readout.
It took until noon to shake off the weekend sentiment but after that a rebound ensued. The trick is in not jumping in to fast to catch the reversal. On Mondays just learn to be happy with partial reversals like this. Here now is it's five day chart.
Monday morning dips on Exxon often reflect weekend resets. I wouldn't want to be trying to outguess it on Tuesday morning after it traded like this today.

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