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Walmart Again

On Monday I did a blog on buying this week's Call options on Walmart for a morning move. Today is now Thursday and there was a big sell off in the markets yesterday. Tesla sold off for example and here is what happened to it. Today it is slightly rebounding as are so many other stocks. Thursdays however as oftened mentioned in recent blogs are not a good time to be purchasing one day options on stocks that expire the next day. Times change. In less chaotic times that's not always case. In the last few years there would be known upcoming Friday morning events like the release farm payroll numbers or other economic readings that would move the needle on the markets going up or down on on a Friday morning. In those markets it paid to get into option positions before the closing on a Thursday to get out on the Friday morning bounces were caused by the release of these premarket reports. So how is any of this revelant to Walmart's trading today? Well, there was a whole bunch o...
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"Apple" at 3:15 p.m.

Last week we talked about "Apple" being a nice stock to trade options on and one of the reasons given was it's one dollar spreads on it's option. Most other stocks in that price range have options on them which have wider striking prices. A 120 Call, a 122.50 Call and a 125 Call for example. That's what you are most likely to see. That being said, the underlying price swings with these "other stocks" needs more of a noticeable and extended directional move to be able to play them successfully. Weekend articles mentioned "Apple" doing well in a rising interest rate environment because of it's abilities to make money on borrowed money forming low cost debt. I wouldn't read too much into that. Today with the D.J.I up 90 points going into the closing trading hour of the day look at how well the 13 series of Call options that expire this week are trading. Up slow and steady all afternoon.
Notice also one again how the volume of daily trading in this series exceeds the open interest. That's always the way it is. The focus always seems to be on interday trading. ^^^^^^^^^ A Next day update. Notice how the market was down and the volumes of trading was way down.
All things considered the stock rallied again on the opening and then off slightly and these premiums dropped accordingly. Let's now look at how the "Puts" now looked on todays action, this time the 134 Puts and not the 133 Puts. Money can be made both ways.
You can see the low of the day on these "Puts" was about 1:20 p.m. when Apple spiked a touch.

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