Featured

Super Micro Trying To Play The Downside After A Strong Earnings Report.

When a stock jumps bigtime on the opening can you play it on the downside? Now two series of its Puts that expire in two days. Now this. The Puts are starting to go up. What do you do next? Cash out with a slight gain? Here is it's five day chart. Can you see how trading short term options have periods of time leave you riveted to your seat. Now another update. .. Might this be a good time to get out and take your money back? Probably. The longer a stock like this goes sideways the less value the Puts will have. To be continued. Getting out was the thing to do. Here is how Super Micro closed on the day. This next chart now has to be added to this story. It's Thursday morning. The stock keeps going up. What are it's Puts doing? Is it worth thinking about taking a position on the downside? They only cost $1.00. Is that reckess thinking? Are late Thursday morning markets the time to be fighting a strong stock? Have you ever thought about Thursday morning Puts being...
Post a Comment

Nvidia Again . Slice and Dice Intense Early Morning Trading

This blog looks at some serious action. When you see the high trading volumes on the one day option in Nvidia you realize it's a game of serious calculations. What I want to show you is how intense this action is. Let's start with it's morning five day tradng chart.
So the price of the stock jumped on the opening this morning and then quickly gave up about one half of it's gain. Let's break down this action by looking at it's early morning chart.The stock is starting to sell off after an early morning jump upwards.
You can see the drop however the stock is still up on the day. Now the next printout shows how the 225 Puts reacted.
The number I want you to focus on is the low of the Puts in it's first hour's trading. The dollar value was $1.10. That's how low the Puts dropped down to when the stock hit the top of it's morning spike. ONE TRICK IS TO PURCHASE PUTS ON AN UPWARD SPIKE. Here is how Nvidia ended up trading on the entire day and a final look at how the 225 series of Puts ended up trading.
Can you see the the 225 Puts jump up to $4.15 at one point in the day? Morning spikes often create these types of trading opportunities. WATCH FOR THEM. Once again Nvidia is one of the stocks that have options on them which expire three times a week.

Comments

Post a Comment

Popular posts from this blog

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

Image
Here is the bad news. The company is Eli Lilly. How bad is this news? Well look at it trading in the premarkets. So what do I think? I think the news is a setback of sorts, but not really all that bad. The stock is going to open lower, that's a given. It's like trying to play Boeing after an announcement that an airplane has crashed. So the stock is going to crash and it might have a small rebound and then it's going to slide down some more. A test of sorts will happen sometime in the afternoon. It might stock falling but then where will it go from there? The best case scenario is a recognition that investors got it all wrong and the stock ends up flat on the day. Yet there might be more of a downward dumping of the stock on the close followed by a selloff on tomorrows opening. Should option players be jumping in to play the upside on next week's Calls? That is the question. Here is a look at Boeing on the days after a crash. Day two after the crash was equally as ...
Read more

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

Image
Look at the one year chart on Polester. Now it's one month chart. What's going on? It's confusing. It was down $.36 cents on the week. If you want you can spend $.20 or $.25 on Puts and hope that the company goes under in the next five or six months. They recently raised more money by releasing more shares so it's running out of options. You can't run at a loss forever and this news will most likely scare off potential new car buyers. This actually is a low number of outstanding Put options. The consensus seems to be that it is not game over yet. Lucid started trading this week on a "one-for-ten" reverse stock split. Here is its one week chart. It was down $1.39 on the week. It's also going to struggle. Both of these stocks have challenges ahead. On a more positive note here is a chart that looks kind of perky. Ford on the week. The stock was down $.03 cents on the week and it was the 3th highest in share volume trading on the NYSE. It appears...
Read more

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

Image
Some say to think small, not big. Trying to play Disney options is thinking big. It is a stock slightly out of favor. If we start with it's a three year chart, we will see it is down by about 50% over that period of time. Now it's one year chart. If the stock can break 110 in early 2024 the sky is the limit. It does have a lot of moving parts so anything could happen. Look at these Calls options one year out. One year in options buys a lot of time.They look reasonable. If the stock ever inched up to the $105.00 price level in the three or four months these options would jump up in price by about 50%. Even more if they had really good news. Yet it's the "what-if" aspect of the equation that castes such a trade in doubt. "What if" stories just don't cut it. There are to many variables in play. Then again, why are we even thinking of long-term Call options after a December's rally? Let's switch gears. If consumers are out spending for X-ma...
Read more