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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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Four Stocks That Looked Hopeful Going Into Last Fridays Opening

Yet I didn't do anything because of a phenomenon called "Triple Witching". Triple Witching Day is a quarterly event on the third Friday of March, June, September and December, when stock options, stock index options, and stock index futures all expire, causing heavy trading volume and increased market volatitity as traders close or roll or roll over positions. Why try and trade in that environment? Now this. Sometimes options going into their last day of trading gap to the upside on the opening, This can create instant profits. Tesla, Boeing as of late, Caterpillar in the last six weeks and Eli Lilly when it is hot can spike on Friday mornings. There are others. This time around, meaning last Friday morning Telsa didn't do anything but the other three stocks did. Look at their Friday morning jumps.
Let's wait for the next triple witching day and watch to see if this spiking action happens again.

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