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Options On Stocks In The Fifteen And Twenty Dollar Price Range With Seven Days To Go And Not Five Days To Go.

I should have called this blog "Ford Calls" or "Harley Davidson Calls" to get more hits but this time I want to show you something a little bit different. What I want to show you is how options with seven days of trading life left in them can suprise. Seven days and not five days. What's the big difference? Well the extra day buys you the action of a Friday bounce without having to worry about your option position expiring that day. Seven and not six days also. These options would need to be bought on a Thursday before the close. This may sound kind of confusing but let me show you two examples of what played itself out last Friday. Let's first use the stock Harley Davidson and use it's Call options as an example. Here is how "seven-day-out-Call-options" would have traded the day later on Friday February 12th. They jumped 60% in one day! What kind of a jump in the stock's price would have caused that to happen? Well let's look at it...

Netflix With One Day To Go. Also Boeing, Tesla And Caterpillar.

Here is a one day chart showing how Neflix traded on December 31st 2025. It sold off on the opening and then had a decent rebound followed by a flat to down closing.
January 1st was a holiday and options on it expire on Friday, January 2nd. Now look at a chart of how the 93 series of Calls that expire tomorrow (January 2nd) traded on the previous trading day December 31st. At one point in the day they rallied only then to sell off again. Here now is the same chart from a different provider.
Let's put a bold spin on things. Let's move up the price point by $1.00 to the 94 dollar price level and put a new spin on things. Will the 94 series of Calls with one day to go jump on the opening January 2nd which is tomorrow? Why the 94 series and not the 93 series? Well it's hoping for a rebound from three prior days of falling markets. Here they are. Both of the series we are showing are slightly "out-of-the money" one day Calls. Both need a sizeable morning bounce to pay off.
....
Might Netflix jump up in price on the opening? Look at it's five day chart. $94.91 was the highest Netflix got in the last five days. That happened on it's December 29th opening.
The $94.00 striking price looks doable but the 95 Calls are shooting for the moon. That plus the markets have tumbled in each of the last three trading sessions. Is there a reason for showing this type of activity? It's actually one of the worst trading periods of the year to be attempting this this type of a trade given that most traders are off on X-mas holidays. My expectations of "make-out-like-a-bandit" on these two series of options is low. Reading this might inspire you become a more active option daytrader. (Did you see the $34 dollar to $76 dollar interday, 11:00 a.m. to 12:30 p.m. move happen today with it's "in-the-money" Call options). In the recent past Boeing, Tesla and Caterpillar are better stocks to play for last day to expiring moves. All three are now listed below to watch. Let's see what happens. 1) Boeing.
Here is how they were trading just after the 3:00 p.m. deadline to get out.
2) Tesla
3) Caterpillar.
Let's track tomorrow's action. Boeing is the only stock of the three not in downward spirals. Many option players will be scared off by chart formations like this. It's now Friday morning in the early opening minutes.
1) Boeing. Remember the 217.50 series of Calls closed at $1.00. Here they are now.
Then this happened.
Look at how cheap the Calls became.
Now this.
Look at how these Call options jumped from their morning low.
2) Tesla. Remember the 450 Calls closed a $5.30? In the premarkets it was up $10.00. Then at 9:36 a.m. it settled down to what the previous day's close was after reaching $9.15.
Now a suprise.
The 450 Calls expired worthless after a jump on the opening. 3) Caterpillar. Remember the 575 series of Calls closed at $2.89? Here they are now.
Now this. The bid and ask at $9.50 - $11.95 with the last trade at $4.68. As mentioned many times before the volume of option trading in Caterpillar is light.
Now this just after noon.
Here is how they were trading shortly after the 3:30 p.m. deadline to get out.
Now the Netflix 94 and 95 series of Calls. In the early trading they are not doing so well.
Netflix closed down the day $2.34 and both these Calls options ended up expiring worthless. What a wide day today was.

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