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Options On A Monday Morning On Nvidia That Expire At The End Of The Day.

Options on Nvidia are widely traded. There are options on it set up to expire three times each week. Monday, Wednesday and Friday. Nvidia is on a terror as earnings keep skyrocketing upwards. Here are it's thirty and five day charts. Imagine buying last weeks Call options on the close last Wednesday and getting out on Friday? What a score that would have been. Now look at Monday morning's trading action. Now shown above is how the stock is trading on the opening. It is up. Didn't it's perky chart look like that might happen? These are "step-up-charts" which you don't see very often. It's 220 series of Calls are up 271% twenty minutes into the trading action on 110,800 contracts! But wait. We first started looking at the 215 series of calls however suddenly we are tracking the 220 "out-of-the-money" series of Calls. What's that all about? Can you see how dangerous a game this can be considering that these are "last-day-to-expiracy ...
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Eli Lilly - Expect Morning Moves Like This. Also Costco and Carvana

I don't like writing blogs about Eli Lilly. Why? Three reasons. It's option premiums are expensive and the stock makes giant moves. The third reason is that I know next to nothing about Eli Lilly's "day-to-day" operating realities. If I guess wrong, yes I say the word guess and I am not apologizing for using it, it's game over. Look at what happened this morning, a Tuesday. It jumped upwards after the opening and then sold off.
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The Puts traded down to $12.64 on the stock's early morning blip upwards and then nearly doubled in price on the ensuing decline. A second chart here below shows that action better.
Buy the Puts just after the opening and sell them a few minutes later or wait and sell them at lunchtime.
It's not only Eli Lilly that moves like this. Look at Costco today.
It also was up on the opening and then tanked. This series of Puts moved up in price.
Finally Carvana. The same story. Up on the opening and then tanking.
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If you are a repeat viewer to this site you will know that these are three stocks on my radar list. Look at the low volumes of Put trading in these three stocks. Situations like this are difficult to track. Serious option traders should track the activities of these three stocks on one screen and watch how they trade in the first ten or fifteen minutes of the opening markets. If any of them have popped upwards and if it's a Monday, Tuesday or a Wednesday then tune into the possibities of reversals happening. Watch for me to highlight these recurences in future blogs. This is big boy trading and the stakes are high.

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