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Walmart And Costco

It's Thursday morning on January 8th. Walmart opened down. But look at how Costco opened up. This time I am showing it's five day chart. A first, no one really new why but then news like below surfaced. I was also searching for the news as I knew something had to be up. At one point in the morning Costco was up over $40.00. So Walmart is dropping and Costco is really shooting up. At some point Walmart has to turn around to catch some of this positive spinoff. Look at how the 100 series of Call options on Walmart shifted gears at 10:00 a.m.. Do these two stocks always trade in harmony with each other? Obviously not but there comes a time when some sort of a cause-and- effect becomes apparent. At exactly 10:00 a.m. this morning there was a realization that Walmart had to change it's direction to stay in tune with what it's big brother Costco was doing. At that time the 110 series of Calls which would be expiring the next day traded down to $90.00 per contract. Now...
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If a Stock Drops 10% In One Day Can You Play It For A Two day Rebound?

Here it is.
Here are the 240 series of Calls that expire in two days.
$565.00 U.S. is a lot of money to shell out as an experiment. Now this. The next days action. Half of this options life has now disappeared.
Now a look at its five day chart which tells a different story.
I don't like chart charts that look like they are languishing sideways. This one does. Analysis explained this drop away under the guise of "macro shift's" happening within the industry, not company specific reasons. With just one trading day left I would get out. Hanging in is to big a gamble. Wednesday's index loss was almost 500 points and today's action
was an across the board market rebound. Get out and start tomorrow with a clear head. Read my previous blog on Pfizer options which also traded during the same time period. *** Friday morning's early action. Yes it couldn't hold it's gain.

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