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Micron Technology. A Nervous Market With Big "One-Day" Option Swings

It's Friday July 31st. Look at this stocks one and five day charts and then look at how one series on Puts which expire today struck gold. First it's one and five day chart. ... I don't know much about this stock however this blog follows the last blog on the topic of buying Puts on spiking stocks. Look at how this one series of Puts below has reacted on this one day selloff. Had I picked a series of Puts further "out-of-the-money" the gains would be even more remarkable. Look at the low of the day which happened on the morning spike and look at where the option is at now! Yet wait the game is not as easy as it looks. How often does a stock drop that much in one day? Not very often. Look at how Apple dropped like 30 points after an earning's release and this series of "out-of-the-money" Puts merely doubled. It could be argued that risk involved in making the trade outweighed any potential reward. If we now go back to our friend, the stock name...
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What Do I See Here? It's Disney In Nose Bleeding Territory.

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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