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Ford Call Options And A Quarterly Earnings Report

Let's start with a comment made by a Ford executive on the release of their quarterly earning report. There will be a "sunsetting of certain vehicles as we refresh our portfolio". What an elegant way saying they are surviving the changing times. Earnings for the June quarter are $.42 cents per share up from $.37 cents on the quarter a year earlier. Yesterday around 11:00 a.m. would have been a good time to catch a ride on this week's Call options. Let's watch how the markets will react to this news on the opening. Let's look at this week's Call options expiring on Friday (today is a Wednesday) and the January 15 Calls for 2027. That buys you about six months of time. First this week's Call options. They closed yesterday at $.46. Now the January 2027 Calls with a $15.00 striking price. They are a longer term play. Let's what happens on the opening. Will option traders be able to take their money and run? ... Take your money and run or wait? The...
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Nvidia Options On A Tuesday Morning.

Itching to find something to do in the markets on a Tuesday morning? Well it's not a typical Tuesday morning from a trading perspective because Monday was a holiday and the markets were closed. Traders are just getting back to work. What about Nvidia options that expire at 3:00 p.m the next day? You're gauranteed that the liquidity found in these options will be great. The markets are opening somewhat sideways with some strenght in the Nasdaq as shown as of 10:20 a.m..
The real action happened in the first few minutes of trading which is commonly the case. Look at this early morning readout of Nvidia just ten minutes into the trading session.
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What do we see happening? Focus on it's chart. Nvidea closed at 215.62 and opened at $215.70. Then it moved up slightly like it did on it's previous Thursday's opening and to a lessor degree on it's Friday opening.(This is a one day chart as of 10:45 a.m.).
In the very first two minutes of trading the Puts slipped down to $.70 cents. It was a case of buying in on the slight upward spike in the first minute of trading. "Slight" but still enough to cause "Option prices" at that time point in time to get squeezed. Just pick an usually low number and have a resolve that tells you this upward move would be short lived. "At market" would work but who knows what kind of a fill you would get! My point is that this is a "catching the right point trade." The best action in short term option trading often happens in the first sixty seconds of opening trades. That's when everything is still a bit of scramble. *Now an noon update.
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One takeaway? Options on stocks in the $200.00 dollar price range offer the potential of moderate price swings. Short term option traders know this. In contrast. option premiums on stocks the $600.00-$1,000.00 price range cause you to invest so much more. It's just not as comfortable a position to be in.

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