CAT Puts

Four years I was writing blogs about "Nio" when it was trading at $22.00 per share and building less cars than it does now. Now I ask this? Are these $5.00 Call options on Nio which expire in three days a trap? $5.00 options with three days to go are not for the faint of heart. Other option traders seem to be following this action. I like this chart and three days in option trading is a long time. .. Let's see what happens on the opening. Now Wednesday at 10:17 a.m. Take your money and run. This was a case of banking on a continuation of morning rallies. The charts kind of told us that might happen. Here is how this chart jumped again on the opening. I would think this game has come to an end.

Very few option traders trade short term options on Disney. The first two printouts below help to illustrate this point. Look at how low the open interest was last Friday on one series of it's Calls and one series of it's Puts. .. Most traders of these options are focused on making interday trades. The low open interest on both of theses series of options tell us that. Now look at how Disney traded on Friday, the last day of the week. Many of the trades made are AI induced. Reversals happened in the morning for example at exactly at 9:31:00 a.m., 9:33:00 a.m., 9:37:00 a.m., 9:41:00 a.m. and other times all to the second of the minute.That's a big the hint it's Ai trading. Now it's one month chart. Disney is down. Now a five day chart. Here is where it gets interesting. What it shows us is that some one week Put options would have doubled in price on a Monday and some Calls would have doubled in price on a Tuesday and the Puts would have doubled in price on a Wed...

What do you think about this chart? It's one of those falling of a cliff charts. It's a Thursday morning and it looks like this stock is kind of in a downdraft. Look at my most recent blog on Rivian. The bad news on Lucid could be a hangover effect caused by Rivan's one day prior bad news story. It was talk about Rivian going back to the markets to raise more money even though they were starting to lose less of it. It was a good-news, bad- news story. A story which would take a few days for the markets to digest. Let's now look at two series of Lucid's Calls which expire tomorrow. We now find ourselves forty one minutes into the market's opening trading action. The 26 series of "out-of-the-money" Calls that expire tomorrow are trading last at $.03 cents. ... Now this. Now look a this small rebound twenty five minutes later. .. Here is where it gets a touch confusing. The $5.50 Calls which were once at $.22 cents are now $.30 and the $6.00 series of...

Rivian needs money again. The stock dropped on the opening today, a tuesday, then stabilized and then dropped again towards the closing. A drop of 18% in one day is pretty crazy and the timing happened after previous snippets of good news. Managament is well aware of the importance good news just prior to the announcement of these type of share offerings. What good news? Well last week Rivian raised delivery projections for this year after its second quarter numbers exceeded expectations. They also recently came out with a new R2 model , an all-electric SUV with a lower price tag. Last year Rivian lost $432 million dollars on 42,277 vehicle deliveries or $10,200 per vehicle. A new question. Why even try to outsmart what's going to happen next? In a way it was kind of sneaky for management to flood the market with additional shares when the stock was trading on an upward blip. Also consider this. Offering new shares in some ways is a sign of weakness. What happened the next day, ...

Traders are looking at this situation with the eyes of children looking at a big roller coaster. Wouldn't it be fun to try it out at least once? These options are a new kid on the block with not much of a history. Analyst in general are afraid to criticize it. The price of admission looks pretty reasonable as the stock got beat up in the last few days. .... The argument could be made that it's difficult to play a stock with so many moving parts. That argument could also be made about playing Tesla options. Yet it's difficult not to be impressed by the stock's volatiity. Let's see what happens this time. Now here we are one day later at very same period of time of the trading session with the D.J.I.A. down about 550 points. These Calls still have two days of life left in them. Tesla is feeling the same heat. Now an end of Thursday readings on these two stocks. First SpaceX. . Even with the stock up $3.86 on the day the Call options did next to nothing. This is a ...

Here is a difficult chart to undestand. It's Nike's five day chart. It appears the world cup tournament has not helped their cause. Do you like this chart for playing the upside? What I like about it is that it seems to have false starts. At the same time I respect the fact that playing short term options in this price range often ends up with disastrous results. Yet saying that, I also know that $.55 option contracts can often double in an hour or two and it's Monday morning which is still all so early in the trading week. ....... Let's see what happens. Now here we are at 11:00 a.m. A safe bet would be to get out and say thank you for a nineteen minute ride. Monday morning resets like this are more common than you might think.* Now this at 1:00 p.m.