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What does the word disconnect mean? As a verb it means "to sever or interrupt the connection of or between; detach". Option trading - one day options - is a disconnect from the world. What happens to slightly "out-of-the-money" Call options on Costco when the stock shoot up thirty dollars on the day? I will show you what happened on Friday to Costco Calls and the options on a few other stocks I frequently watch. What a disconnect from the real world. But before that a look at how the indexes traded. 1) Costco. It's five day chart and a look at how three of it's option series moved upwards in one day. You may not know how to read these printouts but try to read the highs and lows on these option pricings. One printout shows an "at-the-money" option which means you are buying a contract on the stock, good for one day only at a locked in price equal to (or very close to) what the stock is currently trading at. The other two contracts shown are ...
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"Big Fools - Gamestop - Stuff"

Look at this chart and I will tell you what happened.
One day back in January of this year "Elon Musk" inadvertently referenced the wrong stock called "Signal Advance Inc." and as you can see it went crazy. Instant profits for some lucky shareholders. The chart doesn't tell the whole story. If you look at the January 11th printout what you will see is that the stock started the day at $7.49, went to $70.85 and backed off to close at $31.51.
Now here is where it is trading today, down in the $2.20 range. It traded 2.3 million shares on Jan 11th, the day of it's high and now it trades on avarage something like 12,000 shares a day.
Now here is the "Gamestop" chart. It's taking longer to crash down to earth.
Next is "Sernova Corp.", a London Ontario based stock. On January 7th it was trading at .62 cents and ten days later on Jan 17th, 8.7 million shares traded in one day and closed at $2.42. Now it's backed off in price to $1.48 and traded 313,000 shares last Thursday.
Yet another one that recently rallied is "EYES", "Second Sight Medical Products". It was $1.43 on March 3th trading 784,000 shares that day to then reach $15.48 on March 8th trading 107 million shares. Now it's sliding back down again.
Finally, I want to mention the little "Sarnia" based rubber bullet company named "Lamperd Less Lethal Inc." A few months back when the riots were happening at the "White House" and cops were out in the streets carrying "Lamperd Less Lethal" made shields the stock surged up to the .07 cent range on huge volumes. Now it is back in the doldrums again.
It's these types of absurdities that help to make the markets interesting to me. ^^ Scroll back up to read by most recent bogs on "Boeing".

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Living on Kraft Dinner?

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What does the word disconnect mean? As a verb it means "to sever or interrupt the connection of or between; detach". Option trading - one day options - is a disconnect from the world. What happens to slightly "out-of-the-money" Call options on Costco when the stock shoot up thirty dollars on the day? I will show you what happened on Friday to Costco Calls and the options on a few other stocks I frequently watch. What a disconnect from the real world. But before that a look at how the indexes traded. 1) Costco. It's five day chart and a look at how three of it's option series moved upwards in one day. You may not know how to read these printouts but try to read the highs and lows on these option pricings. One printout shows an "at-the-money" option which means you are buying a contract on the stock, good for one day only at a locked in price equal to (or very close to) what the stock is currently trading at. The other two contracts shown are ...
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