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Ford Is Expected To Open Lower

Let's jump right in. It's Monday morning and here is how the 12 series of it's Calls that are expiring this coming Friday are starting the week. The "bid-and-ask" on the stock was down about $.05 cents in the premarkets. The markets are sometimes slow to get going after a weekend. If the stock opened lower in sympathy with the markets opening lower, how low could this $.27 premium trade down to? Would they then be a good buy if they dropped to like $.19? They do afterall still have five full days of trading like left in them. Now this, today's action. It was nothing to crazy. The stock only moved up $.03 or three cents on entire the day. This printout is not pretty but it tells you a lot of stuff. 1) The low of the day. It was $.11 or eleven dollars a contract at around 11 a.m. Yes the stock sputtered a touch, then it moved up again. 2) Look at the high of the day, $.27 or twenty seven dollars a contrct which is over a double from the low of the day. 3) I am...
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Safety In Puts That Have Dropped 50% Going into A Tuesday Afternoon Trading Session. The Stock This Time Is Goggle

First the one day chart.
Now the DJIA.
Now the Puts.
The stock is up almost $7.00 on the day. Market makers might hope for a flat afternoon in general so that extreme moves settle down before the close of the session. If Google comes off a few dollars in the afernoon these Puts could gain a few dollars. They are afterall off in value by 50%. This is a highly leveraged situation. Let's see what happens. Here they are, twenty two minutes later.
How the open interest number shrunk that much doesn't make sense. To be continued. Here is how these Puts closed the day.
The DJIA index never came back. One of the nice things about using Puts as a trading vehicle on a Tuesday that expire on Friday is that the issue of time value remaining is not really part of the equasion. On Thursdays they very much are. One final thing. The use of Puts which are down 50% in one day as once again, a trading vehicle. Can you see at the closing they were down 33.97%. So they lost half their value on a strong opening and gained back some of it as the stock slightly weakened in the afternoon. Tuesdays are good days to be using short term Puts to method to catch strong stocks losing their morning steam. * Next days opening readings.
** Here is how Google and the 340 Puts closed the week followed at the very bottom by the 330 Calls for next week.
Google moves with the indexes.

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