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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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How The Big Option Traders Made Money This Morning

In most of my blogs I poke around talking about speculating in options on five and ten stocks and sometimes talk about the action in Boeing or Caterpillar. It's all kind of introductory stuff. This blog is different, it's about Amazon, a stock that trades in the $3,500 price range per share. To rich for your blood you might say? I agree but that is where the action is for many of the sophicated option traders. It's big money chasing big rewards. Yet the basic premise of how things work remain the same. This week there are weekly jobless claims reports and the Institute for Supply Management readings on manufacturing activity for the prior month, amongst other reports. The first few days of any month are always busy days of economic reports.
Amazon sometimes exhibits the jitters and it can sometimes be blind sided by bad news. Bad news can send the stock down seventy five dollars in one day. Here is it's trading action yesterday. It gained $8.00 on the day but it was down $25.00 in the last two hours of trading. That's the jitters I am talking about, sellors getting out before the release of job loss/ gain numbers.
So hear we have a stock closing on a Wednesday at $3,479 per share. Would you have the guts to buy in just prior to Wednesday's close a Call option with a striking price of 3,500 which is $21.00 dollars "out-of-the-money" that expires in two trading days? Here is the series of option contracts I am talking about and here is where they closed. They closed at $11.20 a contract with over 31,000 Call option contracts trading on that series in one day! Then in the next the next printout I will show you what price they traded up to on the Thursday morning opening market. Look at how these options jumped up in price.
$11.20 to $19.55 just after the opening at 9:34 a.m. Amazon jumped up $22.00 on the opening. Some option traders trade in a different league.

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