Featured

The Markets Never Stop. The Stock Lowes And Forward Looking Thinking.

An earning's report came out and some of the reason's the stock dropped made sense. Let me tell you what happened and why. Lowe's sold off in price over $12.00 in one day on an earnings report. How bad was the report? Well that is something that is debatable. Some people would say that past sales are not a good indication as to what might happen next. Not many option traders attempted to trade in it. Some traders derive more pleasure in playing the rebounds after these types of announcements come out. Here is what their C.E.O said. It is her job to try to put was a positive spin on things. Every word she uttered was well rehearsed. Lowes and Home Depot are always difficult to play because their stories can be spun in so many different ways. On a different note, the Put options five dollars "out-of-the-money", which were the 265 series of Puts were a cheaper and a more profitable way to play this action than the 270 Puts. Yet then again, if the stock only dro
Post a Comment

Boeing Calls on a Monday Morning And The DJIA Down 500 Points

Let's start with a few premarket opening numbers.
Not a happy opening. How do you tackle the week in option trading when it starts like this? Do you jump into Calls hoping for a rebound or do you stay away? Let's see the volume of trading on some of our favourite picks in the first five minutes or so of market trading. Note fifteen minutes into the trading day the DJIA is down about 500 points.
What is there to learn from this? Well don't expect a noon reversal. There might be buying opprtunities after three in the afternoon so sit tight and do nothing. Here are a few closing prices. Will the markets rebound and is this a welcoming buying opportunity for option players? No one knows and snap rebounds often accompany these major sell offs. Any kind of bounce on the opening tomorrow may be short lived. Here are the closing numbers.
Tomorrow we will look at "the open interest numbers" to try and see how positions increased as or if, computereized trading kicked in. Boeing seemed to sell off the least today making it look more interesting than others. Boeing has many daily news reports.

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

Deere Lays Off /Tesla / Eli Lilly/ Home Depot/ Nio

Image
It was announced today, a Tuesday that Deere is going to lay off some of it's workers. Perhaps that news was leaked out last Friday and that's why it could have sold off last Friday afternoon. The stock basically has done nothing over the last three years but some traders love it for it's thirty day swings. I have talked about Deere before. The markets were accepting of this news. In other news Tesla Call option traders are rejoicing. Image getting in two trading sessions ago at $196.00 to watching it shot up to over $230.00? This was (it's up in the premarkets again) the Telsa trading opportunity of the year! Then there is upside movement in Eli Lilly. But then there is this background news. Now this. Talk of a hurricane. Will Home Depot go up? Then there is Nio. It's shares trade huge volumes and the stock has a wide following. Might it trade back up to $6.00? It's down almost half price on the year. One of the problems in trying to anticipate what m
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