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Eli Lillly - Expect Morning Moves Like This. Also Costco and Carvana

I don't like writing blogs about Eli Lilly. Option premiums are expensive and the stock makes giant moves. I know next to nothing about Eli Lilly's "day-to-day" operating realities. Look at what happened this morning, a Tuesday. It jumped upwards after the opening and then sold off. ... The Puts traded down to $12.64 on the stock's early morning blip upwards and then nearly doubled in price on the ensuing decline. A second chart here below shows that action better. Buy the Puts just after the opening and sell them a few minutes later or wait and sell them at lunchtime. It's not only Eli Lilly that moves like this. Look at Costco today. It also was up on the opening and then tanked. This series of Puts moved up in price. Finally Carvana. The same story. Up on the opening and then tanking. .. If you are a repeat viewer to this site you will know that these are three stocks on my radar list. Look at the low volumes of Put trading in these three stocks. Sit...

Stellantis On A Monday Morning After A Big Fall

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Last week was a bust. Here is it's chart. Now there are a couple of options to consider. The most logical ones to consider are the $7.00 series of Calls or the $7.50 series of Calls. In the case of picking one or another I like the $7.00 series of Calls better. To simple a judgement call you you might say? Well the stock just lost 30% of it's value and many traders leading up to this sell off were afraid to play the stock knowing it's product lines are in general to expensive and knowing that there are no quick fixes. But wait, might the stock continue to slide on Monday morning? Probably not as the stock just had a pretty big haircut and all of the auto stocks now seem to be having issues. Why beat up Stellantis even more?. The other part is that this might now be an attractive buy in situation. Why not get in on this action at this attractive new pricing. Get in on the Friday near the close hoping to profit from a Monday bounce. Selloffs this large are rare. What would ...

Playing Eli Lilly Calls On A Thursday.

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Here is it's chart. Look at the extreme one day price movements. Here are what the indexes are doing at 11:10 a.m.. Now the Eli Lilly Calls twelve dollars "out-of-the-money" with one day to go. Now this, an end of day report. Now it's five day chart including today's action. To be continued. There is still reason to be optimistic. Now this in Friday's premarket. Friday was a suprise. The 140 Calls turned into a suprise. Very few traders had the guts to play them. This happened. Eli Lilly often suprises. Jumping in on Wednesday on the downside or jumping in on Friday morning was the way to play it. *** Can you play options on Eli Lilly up and down? They are expensive however as of late they have had huge price swings. Looking for opening market reversals is one way to play them.

What Do You Think Is Going To Happen? "NIO" On The Opening

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What's going on with "Nio"? Will this be an opportunity to make money? Sorry it's to late now to join in the party but just read this for the fun of it. One day Call options that expire tomorrow. Is this a recipe for failure? It might be. It just looks to easy to make money on these ones. ... .. "NIO" Calls that expire at 3:00 p.m. today (Friday) and closed at $.24 cents on Thursday. $.24 cents really means $24.00 dollars. They jumped as high as $.43 on Thursday on the release of their good news. Let's see if they can jump again on Friday's opening. Now this, Nio in the premarkets on Friday morning. So what happened? It jumped again. The Calls hit a high of $.70. It helped the D.J.I.A. surged upwards. North American option traders are for the most part afraid of option trading on Chinese EV stocks. This was a two day rare occasion of good news.

Caterpillar Has It's biggest One Day Drop Of The Year - And Then Up $47.00 Dollars

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Look at this five day chart. At 9:45 a.m. yesterday Caterpillar was trading at $720.49 and then 3:51 Hours later it was trading at $676.95. That's an interday drop of $43.49 or a $12.40 per hour drop. What caused the drop? Bad news about the U.S. economy. Is the stock that fragile? What bothers some current shareholders is the infrequency company news releases. Yet thnm again, earning reports tell the entire story. Investors need to hear more about a better plan to go forward. One possible solution would be for Caterpillar to spin off different divisions while still maintaining partial control. The gold miner Barrick for example is now announcing a new public offering of a subsidiary that would hold it's North America gold assets. Caterpillar could do the same, perhaps spinning off it's Solar Turbine division now operating as a subsidiary. That could unlock hidden value. Here is what Ai says about the advantages of making such a move. All I know is that the stock Caterpi...

The Auto Industry Is Under Control

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Look at this printout. Almost every stock on this list was totaly flat. Tesla up fifteen cents. Do you know how seldom this happens? It never does. Yet it happened today. Now this, a chart of how Telsa traded on the day. Look at the three hour price swing between 11:00 a.m. and 2:00 p.m. Now this. The 30 day out Call options on Tesla. Now the thirty day out Put options. They mimic the same kind of price swings. Intraday price swings of $7.20 and $6.97 on these two series of options. So why is this important? Watching thirty day out options is increasingly becoming a smarter way of churning out profits. In these examples one is putting out sums of money like $2,000.00 U.S. with the expections of daily returns, well in this case about $700.00. I know what you might be thinking. You might be thinking that the risk/reward aspect of the equation doesn't make sense. In response to those concerns I would say employing this strategy works best for traders already engaged in trading ot...

Why Did G.M. Go Back Up Again?

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It went up on a earning report. I talked about that in a recent blog. Now this. Traders are not getting excited about this opportunity of playing the downside. Analysis are all busy extolling the virtues of playing it's upside. $100.oo dollars a share many are now saying.Now this less than an hour later. With the D.J.I.A. down 221 points you don't know if it's going to continue on and drop 600 points. When you play G.M. Puts you have to get in and out as quickly as you can. The reason for looking at it this time is because the indexes were looking pretty ugly. ** Here is how they closed the day.