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Showing posts from July, 2021

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Walmart - Tight "Bids and Asks" Is An Admirable Feature

It's chart looks horrible... It's Wednesday morning at 10:30 a.m. which is one of the very best days of the week to be looking at options on stocks which will be expiring on Friday afternoon. I have said that often before. I also like it when the option makers for Walmart stand true to game with tight bids and asks. What this means is that if they see extreme price swings starting to happen they don't freak out and allow large gaps between the bids and ask and questionable fills. You might not understand what I am talking about. It's a nice stock to trade options on and getting "in-and-out" of option positions on it tend to happen seamlessly. Look at the open interest in this series of options. It's next to nothing. On Monday there was this news. Costco is feeling the same pain. Is there to much negative energy and confusion in this space? Time will tell. To be continued.
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Caterpillar Earning Report Plays

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So tomorrow is the big day when Caterpillar releases it's second quarter earnings report. It is expected to be good. Boeing just had a great earnings report yesterday and analyst are expecting Caterpillar to also report decent numbers. Let's look at the five day trading charts on these two companies and this mornings super strong premarket indicators. (It's always good to be selling into strong premarket indicators because history tells us that they never stay strong forever). It's July 29th and Caterpillar's earning report is tomorrow. Ford also just had their earning reports and good new also on that front. So far so good? Good news everywhere right? It's only good news if you can capitalize on it. What am I implying? Well I don't want to digress to far off topic however option trading can be an exacerbating experience. I missed the Boeing and Ford trading opportunites despite the fact that I anticipated both of these two companies would do well. Do I...
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The Trade of the Year

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It's not that complicated however it kind of slipped under the radar. It was a big name company we all know called Lowes. The payoff was wild. What are we looking at? Options that closed on Thursday at ten cents a contract and opened at one cent the folling morning, a Friday which then then hit an interday high of one dollar and fifty cents. A one thousand dollar investment would have went as high as $150,000.00. Folks, all of this is legal and anyone can play it. You could have made it all by lunchtime. What happened? Well we are talking about the 200 series on Calls that expired yesterday on Friday July 23th. At the start of the trding session they were over $3.00 "out-of-the money. Very few traders saw value in them. Yet Lowes did close strong on Thursday the day before it. Then it wobbled a touch on the Friday opening and resumed it's upward charge. The price of lumber is dropping and many people are waiting to purchase lumber at these new lowering prices. The kicker ...
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