Featured

Tesla On A Friday Morning.

The concept of playing last day until expiring Tesla options scares most people. Maybe it shouldn't. In the list of the five most actively options on any company Tesla would come it at about #2.. My next statement is going to sound kind strange. One strategy often employed is to look for quick reversals on the opening on Friday mornings with the soon to be expiring options (at 3:00 p.m.) and see how this situation plays out. That's what has happened in the first chart below. It sounds silly yet watch them for yourself for the next month or so and see how often this pattern happens. Now here is it's chart at 9:56 a.m. this morning. It's flat after a dip on the opening.That flat line on the top of the chart shows you wher it strted the day. The dip on the opening dropped these Calls down to $.85 cents. Now here is it's five day chart. You can see this morning's dip in it's chart. Now to further set the stage here is how it's Calls and Puts are tradng, a...
Post a Comment

Options On A Six Dollar Stock That Can Surprise. A Five Day Journey Of Adventure ( Big Bear AI)

I have writen a few checky blogs recently about some relatively obsure company called Big Bear Ai. It does however sometimes make the list of the top most actively traded stock by share volume on the NYSE index. That's how I initially discovered it in the first place. It's a hot stock now but it six months time it may be long forgotten. Here is it's year to date chart.
To today is a Monday and here is what it's chart looked like at one point last week when I said it could be a good time to catch the upside. As you can see in one of my last blogs the options on it more than doubled in price on the following day.
This time the chart shows the same end of week bounce and a slight sell off this Monday morning.
Could this be a good entry point? Monday morning sell-offs may linger, longer than one would think.
Now this two hours later. Little has changed.
They closed the day at $.31. Playing options on six dollar stocks is not always a walk in the park. Now it's Tuesday morning. These same Calls had a rough opening as you can see by the chart below and they traded down to just $.20 .
Here is how they closed the day.
Look at the volume of trading. Once we see tomorrows open interest numbers we will be able to see if traders today were getting "in-and-out". $.20 to $.36 is not a bad swing and these options are liquid. Imagine in the U.S. to be able to trade with no commissions. Now it's five day chart.
Now Thursday journey.The DJIA was strong on the day.
The options dipped and then came back again.
Now Friday. First a five day and then a one day chart.
The 6.50 Calls expired worthless. Here is how the stock traded on the day.
The $7.00 Puts were trading at their lows of the day around 10:15 a.m. That was the time to get in and then out at noon.
Tracking the stock like I have done is not that difficult to do. Options on this stock offer multiple trading opportunities. **** By share volume BigBearAI was the most activity traded stock on the NYSE last week.

Comments

Post a Comment

Popular posts from this blog

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

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

Another Blog On "Vinfast"

Image
There is so much to read about this companies history online. Do your own homework. Their success is not dependent on what ends up happening with their sales in North America. They are nimble. There are plenty of auto factories all over the world now for sale they can acquire. They have dabbled in Australia. Having access to money to keep going doesn't seem to be their problem. Rivian also seems to enjoy this advantage. Vinfast is currently building a new plant in India which could employ thousands of people. That's an emerging new market. New relationships are being built and new investors will be coming onboard. Are option players looking at this stock? Not really if we look at these "one-month-out" Calls. What about Calls further out? What about next January? Here is a look at the three and four series of Calls. Nobody seems willing to bet Vinfast Calls. Now this. Here are two snippets taken from a blog I wrote about this stock back in early December of 2024. ...
Read more