Featured

"Boeing Calls" On A Friday Morning.

I wrote the very same type of blog about Boeing's trading pattern last Friday. In that blog Boeing went flat in price for the entire afternoon. Any profits to be made in the Puts happened in a very limited period of the morning's trading action. Might things today happen in the same way? The price of oil is suddenly up. That's not good for Boeing. Let's begin with Boeing's five day chart. Now it's one day chart on Thursday. Look at how the stock wandered back up towards the very end of yesterday. Could it inch up another touch on the opening and then run out of steam? Would this be a good time to be focusing on the 210 Puts? Experience has taught me not to be jumping into Calls options on Thursday afternoons to catch Friday morning rally. That's more something one might do at the end of the day (on Fridays) to catch a Monday morning bounce. Here is a look at what two series of it's Puts are doing and it's chart about eight minutes into Friday morn...
Post a Comment

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

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