Featured

Lucid Had Another Scare

Look at this big bump in the road. A spike down to $2.45. at 1:44:59.p.m. on a Tuesday followed by a full rebound. It's never good news when things like thus happen. There were rumors of it going into bankruptcy which the company quickly denied. Was someone purposely spreading this rumor for self serving reasons? From my point of view the uncertainty caused by this occurance adds an extra layer compexity to the long journey that this company endured. Will institutional traders worried about liquidity issues and the preservation of capital change their attitudes on this stock? Traders, for reasons I don't understand seemed to quickly brush this incident off. The company has recently raised more money and has cash on hand. Production numbers in 2025 were somewhere around 16,000 units and are now estimated to be around 21,000 units in 2026? This nervous dip muddies up the waters around this company. In the bigger picture this stock offers investors an opportunity to bet on a rebo...
Post a Comment

Why Exxon Options Are Changing The Game Of Option Trading

At least it is now in this current market environment. Look at it's one day chart today. Remember, options trading on it are set up in one dollar intervals. Can you see how it jumped up on the opening?
Now let me show you four ways traders could have made money trading this stock today. 1&2) A double happened right off the bat. Buy the 116 Calls at 9:30 a.m. and sell them at 10.00 a.m.. Or wait until 1:45 p.m. That would have also worked. 3&4) Buy the 117 Puts at 10:00 a.m. and sell them at 11:00. a.m. Or buy the 117 Puts at 1:50 p.m. and sell them at 3:55 p.m. Is it really possible to make three or four meaningful successful option trades on one stock in one day? I would say yes and in this case it helped that a double happened in the very first thirty minutes of trading. Sometimes the charts don't look like this. Let me give you this example from the opening of the trading session last Friday. From watching Exxon charts daily you will see a pattern of the stock having some of it's biggest moves in the first twenty or so minutes of trading.
Now this, let me show you how the 116 series of Calls that expire this Friday traded on the day. Nothing really crazy but they can sometimes move like 30% in price in a very short period of time.
Is there a secret to playing these options? It has to be a self learning process. What I have just illustrated is proof that what I have just talked about is real. Over the next couple of days I will hone in on more of this action. Why do so few option players play these options? I don't know however I could ask the same question about why so few traders trade Caterpillar or Deere options. Exxon is at a great price point which allows these options set up in one dollar increments to swing. ********** Look at this past five day chart on Exxon. Staying in option positions overnight is a very high risk. Playing the interday moves on Exxon requires a lot of babysitting.
To be continued.

Comments

Post a Comment

Popular posts from this blog

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

News on Polestar , Lucid (Trading After A Reverse Stock Split) Plus Ford News And Vinfast

Image
Look at the one year chart on Polester. Now it's one month chart. What's going on? It's confusing. It was down $.36 cents on the week. If you want you can spend $.20 or $.25 on Puts and hope that the company goes under in the next five or six months. They recently raised more money by releasing more shares so it's running out of options. You can't run at a loss forever and this news will most likely scare off potential new car buyers. This actually is a low number of outstanding Put options. The consensus seems to be that it is not game over yet. Lucid started trading this week on a "one-for-ten" reverse stock split. Here is its one week chart. It was down $1.39 on the week. It's also going to struggle. Both of these stocks have challenges ahead. On a more positive note here is a chart that looks kind of perky. Ford on the week. The stock was down $.03 cents on the week and it was the 3th highest in share volume trading on the NYSE. It appears...
Read more

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