Posts

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
Read more

Ford. A Sloppy Looking Chart

Image
It looks ugly. .. So here is the thing. Call option players at this point in time are offered the opportunity to buy in for the leverage. One doesn't need a full recovery to $14.00 or more to make money. Any hint of a slight rebound witll move up the price of these options exponentially. It's Wednesday morning and these Calls don't expire until Friday. Let's see what happens. A late in the afternoon trading update. Now we are waiting for a strong opening on the upside. Look at the volume picking up in this series of Calls. Looking at that indicator can fool you.Thursday morning. No strong opening. Now at 10:00 a.m. Thursday morning. ............... to be continued.
Post a Comment
Read more

"Nio". So Much At Stake.

Image
One day option trading. Look at "Nio's" one day chart. What a waste of time it is you might say to look at junky options on junky $5.00 stocks. I know, "Nio" has kind of a checkered past. Monthly sales numbers however have just increased significantly. If that's the case why did the stock dip on the opening? That's a missing link in this puzzle and something we have to discount based on the opportunity that this quick price drop created. ... A thirty cent price drop happened on this stock on the opening and this week's Call options took a major hit. Obviously catching this morning's sell off using Call options as a trading vehicle was the way to go. Where these Call options are going to go from here is something I will track. Last week I talked about another stock in a rebounding mode called Hertz. When I pull up it's trading pattern today we can see the same thing happening again. $.19 cent Call options now trading at $.60 in one day. I do...
Post a Comment
Read more

Apple Options

Image
Apple options can move quickly and they are tough to play. Product launches are highly anticipated, often delayed and widely followed. Short term options on Apple expire three times a week. The stock can move $3.00 or $5.00 or $10:00 in any given day. Do I have any special insights into how to play options on it? Not really, in this case the stock has moved sideways for most of the day after a quick morning drop. Now here is it's five day chart. Now this. So what makes these so difficult to play? It's that so many different factors can make the stock move so luck makes up a big part of what might happen next. A six dollar stock drop on Apple is more likely to experience a reversal in price than a twelve dollar drop. Let's see what happens next. Here is the $307.50 series of Calls in the last minute of Monday trading. Can you see the volume of trading shoot upwards in the last 70 minutes of trade. Let's see what the open interest is going to be going into tomorrow...
Post a Comment
Read more

Boeing "Near-To-The-Money" Options Baffles Me On A Friday Morning.

Image
After a four day period of intense price changes for the stock Boeing on Friday morning presents itself as trading in a sea of calm. It's trading flat. Here is it's daily price swings over the previous four days. $5.50, $4:10, $6.00 and $5.40. One has to wonder whether or not these large daily price movements are somehow formulated into providing the Friday morning's "bids and ask". They should be. The reason I mention this is that the Friday morning's "bids and ask" in the first few hours of trading look particularly inexpensive to me. Is it because there are no scheduled press happening today? .. Now a 12:33 p.m. price check. With stock trading flat and with a couple of hours of trading life still left in these options, couldn't the stock drop down or go up another three or four dollars? That's what seems to have happened over the week. .......... Now this at the end of the trading session. At 3:00 p.m., the time these options expired ...
Post a Comment
Read more

How Boeing Is Set Up On A Thursday Morning

Image
Here are two series of it's option that expire tomorrow. At 11:23 a.m. the Puts finally broke. Previous blogs talk about how Boeing has been so strong. Fighting strong stocks is a battle so the interest in them is not all that great. Here is how it closed the day. Few traders caught this downside action. Fighting strong stocks is a dangerous game. If you get the direction wrong with options that expire the very next day you are finished.
Post a Comment
Read more