Featured

Tesla And The Play Of The Week - An Easy Read.

Here is Telsa's five day chart. Can you see how it spiked to the upside on Friday morning before it tanked? Can you see how as the day progressed it dipped down to the support level of the $210.00 range? Here is its one day chart. Now this. Lucky in all this action are all those individuals who purchased one day Puts on Telsa in the first few minutes of trading. Look at how these Puts reacted. The lows of the day happened in the first few minutes of trading. Look at the pecentage gains. In the last example a $1.00 option went to $190.00 in one day. Catching one trade like this could make up for twenty bad trades. What's all this talk of Ai trading? Moves like this could blow up the exchanges if thousand of trading platforms could recognize this could happen. This was one of the best option trading opportunities of the decade.
Post a Comment

Apple Again... A Strong Option Trading Stock Some Players Exclusively Play

Trading Apple Calls and Puts can be a full time, do nothing else adventure. Massive volumes trade on these options. Large swings follow the "at money" Call and Put options which means that if this stock is trading at 133.50, the minute to minute action will be the options with the 133.00 and 134.00 striking prices. It's Friday morning thirty minutes into the day. Apple closed the previous day at 133.41. The 134 Apple Puts which expire today closed the previous day at .90. So what happened next?
Apple came off in price on the opening which was a continuation of it's previous day's trend. Then, about ten minutes into the market the opening strenght of the market became apparent, a 200 point opening rally. Look at the value of the 134 Puts. They dropped to a low of .61 as Apple started to rebound slightly. Then another reversal as Apple decided to move down again. The Puts jumped back up again to over 1.00. To recap, a two hundred point rise in the D.J.I. on the opening "lifted the boat" so to speak on a series of Puts that started the day following the downward momentum of it's previous day's trading. A fifteen minute trade on the opening presented itself. That's what trading Apple options is all about. As the trading continued later that morning the logic of what transpired in this short period of time was quickly forgotten. My point is that it's this first half hour of option trading on every Friday morning which is the climax of option trading for the entire week. My June 4th blog, "Working the Markets on a Friday Morning..." shares this same sentiment. A 10:45 update. Look at how the logic of the first part of this blog gets totally obliterated as the trading day continues.
In only a matter of minutes the bid .89 ask .94 we saw at 10:03 a.m. shrank down to bid .45 ask .48. That's one of the reasons I was happy to get out of my position in this yesterday. Now here is how this option series finished out the day. They closed at .78.
**** A look at Apple one day later on June 28th. It's a new ball game! At the same time the markets are tanking!

Comments

Post a Comment

Popular posts from this blog

A Fireside Chat - One Year Options and Thirty Day Options. Which is Better?

Image
Some say to think small, not big. Trying to play Disney options is thinking big. It is a stock slighty out of favor. If we start with it's a three year chart, we will see it is down by about 50% over that period of time. Now it's one year chart. If the stock can break 110 in early 2024 the sky is the limit. It does have a lot of moving parts so anything could happen. Look at these Calls options one year out. One year in options buys a lot of time.They look reasonable. If the stock ever inched up to the $105.00 price level in the three or four months these options would jump up in price by about 50%. Even more if they had really good news. Yet it's the "what-if" aspect of the equation that castes such a trade in doubt. "What if" stories just don't cut it. There are to many variables in play. Then again, why are we even thinking of long-term Call options after a December's rally? Let's switch gears. If consumers are out spending for X-mas
Read more

The Crazy Last Day of Option Trading In Tesla.

Image
First, look at it's five day chart. Big jumps everyday. If you try and jump in and play the downside everyday you will quickly get beat up. Here for example is one look at the Tesla 235 Puts on Wednesday at 9:34 a.m., only then to check out the same Puts a few minutes later at 10:15 a.m. How do you know what to do? Well you don't fight stocks running up over $8.00 in the first thirteen minutes of trading. Now here is how these Puts were trading at 12:59 p.m. The game is to sell the Puts when the stock is rising and then cover them to be out of the markets at a profit by the end of the day. It's not the small fish playing this game. Now today is Thursday July 4th and the markets are closed. Tomorrow is Friday July 5th.These Put options will be expiring at tomorrow at 3:00 p.m. If Telsa opens down two or three dollars on the opening there is the potential for a small reaction. They will still however be extremely "out-of-the-money". They might jump a touch i
Read more

I Wonder How The Back Office Is Going To Handle My Complaint

Image
The blog is about dealing with the back office of the brokerage company I trade with. This story happened today. Todays trading session has closed and I just made a telephone call to them just after the market closed to voice a complaint over how I feel I got short changed. Here are my background notes. 1) It involves trading the 370 Boeing Puts that expire at the end of this week. I bought in at 10:08:34 a.m. and sold out at 2:59:38 p.m. I was stuck in this position longer than I had hoped. I got lucky and did O.K., however that is not the point. 2) Here are my two "in-and-out" tickets. Two contracts in at 10:08 a.m. at $163.00 each and two contracts out then "at-market" for $365.00 each at 2:59.38 p.m. Now here is Boeing's one day chart. It dropped precipitously from 2:59:00 p.m.to 3:00:p.m. I just happened to be watching it at the exact time of the crash. That's when news came out that the "FAA opens Now a Boeing Inquiry over 787 inspections"
Read more