Featured

Ford Is Expected To Open Lower

Let's jump right in. It's Monday morning and here is how the 12 series of Ford 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 not...
Post a Comment

The Exercise Of Playing Pfizer Options

Last week I posted a blog about buying Pfizer Calls at the very end of a trading session when the DJIA was down 500 points. Options on stocks that are in $25.00 price range are highly leveraged and it doesn't take much of a move in the stocks price to generate a move in the underlying options. That's the logic behind this kind of trade. Today similiar circumstances (a sizeable drop) are brewing with the DJIA index now down in mid morning trading. Could these Call options rebound from an early morning drop?
Here are two series of Call options to follow and Pfizer's current five day chart.
....
....
Let's see what happens. Here is the 25 series of Calls again in the late morning trading.
Now here is how they closed the day.
This series did nothing all day and the DJIA never came back.
Now this on Wednesday morning.
$.25 to $.36. Now more upward movement and look at the buying volume pouring into them.
Notice the jump tp a high of $.52 ** Thursday morning saw a jump to $.63.
Now this at 2:12 p.m.
Here is how they closed the week.
One week options on $25.00 stocks is a dangerous game to play.

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