CAT Puts

Could Christmas come early? Here is Tilray's three month chart. Everytime Trump says sometime about the decriminalization of marijuana, stocks in this sector shoot up as a group. Now this. The December 19th $1.00 Calls. Here is how many shares of the stock are outstanding. It's difficult to read but it says 1.1 billion shares. Here is how the stock traded in the last five days. * Good news on Tuesday. This is not the kind of position you usually be watching hour to hour. Only two months ago this stock was trading just over $2.00 per share. Now it's half that price. Tilray's next earning's report isn't out until January 9th. 2026. Perhaps the December 19th options don't buy you enough time. Let's look a little bit further out. They offer more time but the added time comes at a price. Other stocks in this same space could also suprise to the upside. Tilrays $10.00 Call options at this point in time are something to consider as more a...

This stock had an unusual trading pattern last Friday. It is now Monday morning and this weeks option trading will be shortened by one day because of thanksgiving on Thursday. Here is the stock chart I am referring to. $24.50 to $25.50 in one day and now chilling at $25.00. It now has to move one way up or down. How do you decide which way? That's the issue. To buy both the Calls and the Puts means that you are going to get burnt one way. Here are the pricings on both the Puts and the Calls two minutes into the opening trading. The open interest in both the Calls and Puts is next to nothing. One thing is for certain. Traders are soon going to wake up to this action. The spread between the "bid and ask" on both series is $.05. That's not an issue. Lets check in at 9:58 a.m. to see what is happening with both the Calls and the Puts. .............. So what to do? Wait. It's now 10:47 a.m. It's now 11:00 a.m.. If we are going to make a stab at playing the d...

This is something which affects retail option traders which I have never really paid much attention to before. Option makers steer option traders away from chasing the option market between 1:00 p.m. to 3:00 p.m. on "last-day-Friday-afternoon-options". It's particularly noticable on certain stocks like Exxon. I came apon this after writing a blog about trading friday morning one day Call options on Exxon. Look at the "bid-and-ask" on this series of Calls on Exxon at 1:11.p.m. Look at how wide the spread is. Sixty one cents! That's crazy wide and if your stuck in a postion that you want to get out of at a fair price well good luck. Placing in a sell ticket by spliting the difference between the bid and ask would probably cause the bid to drop. This would force you to lower your asking price once again. In other words the liquidity is not there. This is in spite of it's mornings option trading being brisk. In all fairness there may be other reasons for t...

Exxon on Friday morning. It's five day and one day charts. .............. ..... No real volume in the Calls. Now this. Volume is coming in. It would be nicer to see the spread shrink a little bit. At this price the option makers are putting on a brave face to cover up the low of $.44 which just happened. Let's see if a rebound happens in ten minutes. Not really but the rate of declining seems to be slowing down. If you check the Puts you can see the downward action is stabilizing. In a way this is a good indication that now is a good time to jump into the Calls. Now watch this. Now this. Now this 5 minutes later. At 10:24 a.m. it's chart looks healthy. Now at 10:30 a.m. Now at 10:54.a.m. We caught the morning rebound without to much worry. That was the game plan. Getting out would make sense no matter what we leave on the table. *** Now this nine minutes later. These options just lost most of their gains! Sometimes it's good to be nimble! Now this at 1...