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Walmart Again

On Monday I did a blog on buying this week's Call options on Walmart. Today is now Thursday and there was a big crash in the markets yesterday. For example, Tesla had an insane selloff. Here is what happened to it. Today it is slightly rebounding as are so many other stocks. Thursdays however as oftened mentioned are not a good time to be purchasing one day options on stocks that expire the next day. So how is any of this revelant to Walmart's trading today? Well, there was a whole bunch other stocks that got knocked yesterday that might now rebound back up again together. Look at the chart below of Walmart and see how it was off a couple of dollars yesterday. Could you buy in now and get out later in the day? Fantasy thinking, one might say. Could it sneak up even one dollar? Now this. The stock mid morning is now merely trading sideways. Now look at this, the 93 series of Calls. (On Monday we were looking at the 94 series of Calls). At 10:22 a.m. the stock is up six cents...
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"Caterpillar Calls" and a Thursday Morning Bounce"

Does playing "Caterpillar" options on Tuesdays ,Wednesdays and Thursdays give you enough time to make money? It can be a little bit scary because your fighting the issue of time values eating away at the cost of your options and you have to get the direction of which way you think the stock is going to go lined up properly. Buying in late in the day looking for morning bounces is one way to play it. I prefer Thursday and Friday plays on "Caterpillar". This week on Tuesday I purchased both the 237.50 series of Calls on "Caterpillar' and the 240 series of Calls. On Wednesday I was down 30% on my investment from the previous days purchases and on Thurday morning there was a bounce on the opening. I got out.
This little prinout says sell one contract, the 237.50 contract at $5.27 at 9:40.a.m. On the buy side I bought in on Tuesday at 3:47 p.m. and paid $2.22. Here is the ticket and here is another chart showing the bounce. ( My 240 Calls did equally as well, I bought the 237.50 contract as insurance after the 240 Calls were starting to disappoint on Tuesday).
How did I pick my exit point of 9:40 a.m.? That's always the really difficult part I struggle with and more often than not I get out to soon. In this case can you see how a second buying opportunity presented itself later in the afternoon. Why do I like "Caterpillar" Call and Put options? One of the reasons is that seldom does this stock have news releases. That's to me is a good thing.

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