Featured

Step Down Charts And Short Term Options. Nio

Here is a classic "step-down-chart" with one minute of daytime trading life left in them before the markets close at 4:00 p.m.. The stock is Nio. ... This printout of "in-the-money" Call option also shows one minute of trading life in them before the market closes. It's Tuesday and these Calls expire this coming Friday. You are purchasing three days of market trading life. To purchase one thousand shares of this stock would cost you $5,750.00. To purchase options that control the price movement of one thousad shares of this stock for three trading sessions would cost you $370.00. ( Ten contracts at $.37 each). These Calls are also currently $250.00 "in-the-money" which means if the stock totally goes flat for the next three days your options will still have that amount of intrinsic value left in them. Now think about this. Many option accounts in the U.S. enjoy free option trading and there are discount brokers in Canada who can save you money. A fl...

Netflix - One Day vs Next Weeks Calls.

It's Thursday and the "DJIA" is up.
Here is a look at how Netflix is doing.
Now this.
Remember that this stock recently did a 10-1 forward stock split.
Things don't look good, why isn't the stock sharing in today's upward glee? In situations like this it's best just to stay away. Look at how cheap the Call options look that expire tomorrow.
They look tempting however next weeks Call options offer so much more security.
Now this at 12:38 p.m. The markets continue to go up.
Netflix continues to sell off.
Now I am showing tomorrows and next week's Calls just after noon hour. The options that will take the most heat for the rest of the day will be the short term options.
There are decent volumes in both of these series of options. An end of the day report. First the options that expire tomorrow. It would be silly to be in this series of Calls.
Now next weeks Calls.
Now it's five day chart.
One week options are a long way away. Stocks with a bias to the downside are difficult to trade. Now this.
It tells you what Netflix is up to. Investors don't like confusion. Now Friday on the opening. Look at the volume of Calls traded in the first few minutes. They have doubled in price. They are the ones I said were silly to be in.
What about the one week out Call options? Well they have also provided a healthy return. Now would be a good time to get out.
Now an end of the week report. The near term options didn't do well. Next weeks Calls still have lots of life lft in them.
.....
To be continued in a week or two.

Comments

Popular posts from this blog

Waiting For A Drop On The Opening On Bad News - Eli Lilly

A Fireside Chat - One Year Options and Thirty Day Options. Which is Better?

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