Last week was a bust. Here is it's chart.
Now there are a couple of options to consider. The most logical ones to consider are the $7.00 series of Calls or the $7.50 series of Calls. In the case of picking one or another I like the $7.00 series of Calls better. To simple a judgement call you you might say? Well the stock just lost 30% of it's value and many traders leading up to this sell off were afraid to play the stock knowing it's product lines are in general to expensive and knowing that there are no quick fixes. But wait, might the stock continue to slide on Monday morning? Probably not as the stock just had a pretty big haircut and all of the auto stocks now seem to be having issues. Why beat up Stellantis even more?. The other part is that this might now be an attractive buy in situation. Why not get in on this action at this attractive new pricing. Get in on the Friday near the close hoping to profit from a Monday bounce. Selloffs this large are rare. What would one be looking for? If you are an option trader you would be looking for any kind of a bounce. But wait. There is a second way to play this situation. Purchase the 6.5 series of Calls which are more expensive. Why? One reason is that these one's would best hold their value if the stock moved up only marginally which would then give you more time to get a sense of how the markets in general are doing. That plus let's say a $.20 cent move upwards would give you a small gain. See their closing price (on the printout below) of $.80 cents or eighty dollars per contract. There are only 53 of these contracts open. Buy at $.80 and hope to get out at $1.05 on the opening and move on to other things.
So what happened on the opening? Here are the 6.5 series of Calls. In at $.80 and out at $.97.
A jump of 21%.
Here we are at 10:47 a.m. Not much has changed.
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Now back to the 7 series of Calls now shown above. Can you now see how the 7 series of Calls moved up more that the 6.5 series of Calls? The 7 series of Calls moved up 41%! Not a bad way to start the week. I don't understand why so few traders were focused on this action. ** Stellantis lost that gain at the end of the trading session.
** Now a Tuesday 12:55 p.m. update. Not much has changed. Notice the open interest number of next to nothing.
This was a one-off situation. ** Now this going into Friday morning at the end of the week. So few traders had followed these options.
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