Featured

Walmart And Costco. Can You Play Them At 11:20 A.M. On A Friday Morning For A Rebound?

First it's one and five day charts. The time period is near the end of the morning trading session on a Friday morning. Walmart and Costco are beat up. .. If you are thinking about looking for a rebound it doesn't help much that Costco is down over $40.00 on the day. Now here is the pricing on one series of Walmart Calls at 11:27 a.m.. Walmart is also trading down. Now here is the price on one series of Costco Calls at 11:28 a.m.. For what it's worth the D.J.I.A. remains strong. Most day traders just walk away from Friday afternoon "last-day-to-expiring" option trading. Now here are the two closing charts. Both series of Calls would have given you your money back but that's about it. The next week out Call options would have provided slight returns. When you see a $46.00 morning drop on Costco you know that the dust still has to settle.
Post a Comment

Tesla. A Good Read - A 10:00 A.M. Short Term Pop On A Thursday

Would you be willing to purchase an "out-of-the-money" Call option on Tesla with one day to go? How far out you might ask? Well $5.00 out is the answer.
...
Most short term option player's would not find value with doing this trade simply because it has the appearance of being a flip of the coin type situation. Yet most short term traders also know how explosive this stock can be. Why not wait until 10:00 a.m. on Friday morning with the thoughts in mind about catching slightly "out-of-the-money" Tesla options looking for a reversal? That kind of seems at times to be a sweet spot in the markets. The temptation associated with this current situation is that the stock could creep up a couple of dollars in the next few hours of trading if the indexes start to go up. That action could be tradeable. Yet then again option trading on a Thursday is generally not a sweet spot in the markets to be in. Let's see what happens. The pricings on these Calls does look attractive. Now this action twenty six minutes later.
That's what I was hoping for. Notice the new high of $6.00 which happened during this time period?
Tesla is known to suprise. Tesla ended up closing down on the day! The 10 a.m. pop only lasted for 30 minutes.

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

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

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