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Mid Week Morning Option Trading . Apple

Apple moves up in the first hour of trading on a Wednesday. Are there reasons now to be looking at it's Puts? Well with computer generated trading the 10:00 a.m. time period might magically click in to be a "time-of-a-reversal". We are two minutes away from that happening at 10:00 a.m.. Let's check back in twenty five minutes to see what happens. The small upward spike on top of an initial spike did not hold. That's the way I see it anyways.The 10:00 a.m. trading mark was a speed bump that served to change the upward projectory of this stock. Now a revisit to this situation twenty minutes later. Apple shed these worries. With "last day to expiring options" the 10:00 a.m. morning time period is often fraught with worries. That's just the way it is. Now let's focus in on this action just minutes before the 3:00 p.m. option expiracy deadline. Are you starting to understand the power of mid week option trading?
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Will The Markets Top Out?

The Nasdaq Composite index closed up 4.7% on the week. the S&P 500 index, was up 3.6% and the D.J.I.A.was up 3%. Given the elevated volatility levels options have become extremely expensive to buy. Here for example is how Avis Budget traded on Friday.
At one point in the day the 300 series of Calls traded as high as $15.43 on the day. The stock never traded much ovee the $302.00 range. What an exorbitant premium forming part of this equation.
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Now look at the prices on this week's upcoming Calls and Puts.
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What happened to the old days of paying $5.00 or $6.00 for one week out options on stocks in this price range? Look at how Caterpillar jumped on the week on no real news? Up like $83.00 from it's low of the week back on a Monday.
Here now is what a one week out just slightly "out-of-the-money" 790 series of Puts is trading at.
That's not as bad as the premiums on Avis Budget but look at Caterpillar's thirty day chart.
Actually the stock does look somewhat vulnerable to the downside however the risk of pulling the trigger and purchasing a Put is to great. The stock could keep going up. What else is there to consider? Look at how the stock Disney traded on the week. In a recent previous blog I caught Call options on this stock for a quick double. Just a one dollar move on this stock's price this week would do wonders for this series of Calls.
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Conventional wisdom says that few people can successfully trade options for the sake of trading options. I disagree. ** Disney the next day on Monday.

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