First it's five day chart.
There was news this morning which might be attributable to this morning's jump in price.
Ai news should always be taken with a grain of salt as it doesn't add to the bottom line profits overnight. The markets jumped today big time.
Do markets sometimes take a pause after big jumps like this? That's the question and that's why I am attracted to it's one day Puts today just prior to the closing bell. A fifty cent selloff in tomorrow's premarket or shortly after would cause these Puts to jump by 50%. A double in price on the Puts would take a bigger move down than fifty cents. It's a risk however it's a risk worth taking because it gives you two chances to get out of your position tomorrow. One chance on a morning selloff and one chance on a gradual price decline as the afteroon plays itself out.
Might the stock give back one half of what it gained today? Here is how it is trading in the aftermarkets on Thursday.
One concern is the light open interest numbers. This can make for larger than usual spreads between the "bid and ask". Let's hope it's a get-out-quickly situation however there is still lots of trading life left in these Puts over the coarse of the day. To be continued. ** I am not always right in making these kind of calls. Friday morning.
I messed up on my call but look at what is now happening.
Look at the spike in the number of Puts. 3,294 Puts versus 135 a short while earlier.
......
This gets confusing because the open interest in the series of Puts one dollar higher is not going up appreciably. Now this trickery.
Remember these Puts sold down to $.05 on a spike in trading? Now this.
Now this.
Now this.
The Puts did come back to almost what they closed at on the previous day. Two notes. First I didn't publish this blog yesterday until after the markets close because I didn't want to encourage my readers to be doing stupid things. Secondly a comment on these Puts selling down to the $.05 level today on exploding volumes. Look at how these Puts ended up rebounding. If you observed this happening wouldn't this be a wake up call to the fact that insiders are doing sneaky things? I can't explain it and I find it somewhat odd. Towards the end of the first hour of trading there was a massive surge into the Puts. Are you able to see the power behind this one series of "out-of-the-money" of Puts? The Caterpillar blog I wrote concurrently also highlights a similiar reality. **Disney was up $6.30 on the week. Maybe that's why the Put buyers where rushing in. It seems kind of funny that their timing was impeccable.
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