Featured

Nvidia Option Trading Which Expire Today

Before we look at what the "Call-and-Put" option prices are on Nvidia going into a Monday morning I want to show you it's five day chart as of it's closing on Friday. It doesn't really tell us all that much except that it could pop on the opening to regain all that it has just lost. Now it's thirty day chart. Every couple of weeks it seems to swing by $20.00. Now let's look at the price of the 210 Calls and 210 Puts at the close last Friday that expire today a Monday. How you feel about which way the market is going to open? Catch the action correctly and you could double your money. Now this on Monday morning. Nvidia opened up $.07 cents and kept going up. The chart might look like it was down on the opening however the downward action you see on the chart was in the last ten minutes of Friday's trading. The stock has jumped so we can now focus on options with a higher striking price, the 217.50 series of Calls which are more reasonable in pr...

Why I Don't Like Trading Options On McDonald's

Same stores sales are up 6.8% in Q4 2025. With inflation and rising labour and food costs, 6.8% is not really very much. Then the rumours about 2,000 or so more outlets opening up this year are the same projections that we heard over the last few years. What they always forget to tell us is the number of their restaurants shutting down. Why might some be shutting down? Well maybe a new highway going is diverting some of the road traffic off in a different direction or a neighbouring high school is closing down. Four years ago they lost some restaurants in Russia. Now look at this.
Next this.
McDonald's trading on the close back on Thursday. It had a good day. There is new talk about a bigger and better "Big Arch" meal with a bigger burger with a better tangy and creamy sauce. Now this.
Today's one day chart. It's Monday. Now it's one day of Call option trading.
Look at the volume of trading on these Call options. Over 6,000 contracts. The open interest in these series on the previous day was only 315. This I think was "Covered-Call-Selling" meaning instituational trader's honing in on the markets and seeing weakness in the markets. Selling the Calls on the stock's somewhat strong opening and buying them back for slightly lessor amounts of money as the day progressed. Buying Puts would have accomplished the same thing however selling Calls against stocks you already hold is an equally convient way to make it happen. Now let us wait and see what the open interest numbers are on tomorrow's opening. If the numbers are low that's exactly what happened.
Now this on Tuesday morning one hour into the trading session. Look at the trading in this same series of options. Only one option contract has traded.
The market's option bandits are off to other adventures never to look back again. Going forward two days, look at how this action has subsided.

Comments

Popular posts from this blog

Waiting For A Drop On The Opening On Bad News - Eli Lilly

A Fireside Chat - One Year Options and Thirty Day Options. Which is Better?

News on Polestar , Lucid (Trading After A Reverse Stock Split) Plus Ford News And Vinfast