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Micron Technology. A Nervous Market With Big "One-Day" Option Swings

It's Friday July 31st. Look at this stocks one and five day charts and then look at how one series on Puts which expire today struck gold. First it's one and five day chart. ... I don't know much about this stock however this blog follows the last blog on the topic of buying Puts on spiking stocks. Look at how this one series of Puts below has reacted on this one day selloff. Had I picked a series of Puts further "out-of-the-money" the gains would be even more remarkable. Look at the low of the day which happened on the morning spike and look at where the option is at now! Yet wait the game is not as easy as it looks. How often does a stock drop that much in one day? Not very often. Look at how Apple dropped like 30 points after an earning's release and this series of "out-of-the-money" Puts merely doubled. It could be argued that risk involved in making the trade outweighed any potential reward. If we now go back to our friend, the stock name...
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Options On "Ford" Might Surprise You.

Ford is the stock chosen to explain this situation. Here is it's morning chart.It jumped on the opening with the markets opening up strong and then gave back most of it's gains.
So what does it's five day stock look like?
So now let's look at two different series of it's Call options that expire this Friday.
Here is how these two series of Calls closed the day.
Now Tuesday morning.
Notice the low volume of trading. Trading options on stocks in this price range is more difficult to do than trading options on stocks in higher price ranges. You can't anticipate the daily swings quite the same way. In situations like this take your profits and run. * Here is how Ford closed the week.
The 11.50 series of Calls closed at $.02.

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