Featured

Exxon On A Major One Day Dip. Will Trumph In His Usual Way Add To The Confusion After The Market Closes? That's The Bet

It's Wednesday and Exxon has has its's biggest dip on the day in a long time. The DJIA is up. Here is it's chart as of 1:27 p.m. Now it's Calls that expire tomorrow. The trading volume on these contracts is relatively light. Retired U.S. Generals are coming forth and saying Trump has no strategy and just wait until more soldiers get killed. Yet four hours ago and three and two hours ago Exxon was trading at higher prices. Why now? Why an interest in looking for a rebound? Chevron is also down over $11.00. Let's also look at it's Calls. This time we are looking at Call options $2.00 or so "out-of-the-money". These are both high risk trades. Picking a bottom is never an exact science. Let's see what happens.Now this around 2:25 p.m.. Notice a slight rebound in both of these stocks. ... To be continued.
Post a Comment

The Future of Ford. Short Term It Is Not Good

There is news! The stock is jumping.
Look at todays volume of trading as of 2:00 p.m. The average daily volume is around 59 million shares. What a vote of confidence!
Anyone holding Ford Call options has been rewarded.
Is it clear sailing going forward? It should be for the next few months as Ford revels in this glory. But wait, is this all talk and no action. How long will it take to build these new facitities and what will the E.V. marketplace look like three or four years do the road? This good news report may turn sour quickly as Ford is losing money on on each electric vehicle they sell. That's the problem built into this situation. In the short and mid term, things do not look good. Stay away or buy Puts.

Comments

Post a Comment

Popular posts from this blog

Waiting For A Drop On The Opening On Bad News - Eli Lilly

Image
Here is the bad news. The company is Eli Lilly. How bad is this news? Well look at it trading in the premarkets. So what do I think? I think the news is a setback of sorts, but not really all that bad. The stock is going to open lower, that's a given. It's like trying to play Boeing after an announcement that an airplane has crashed. So the stock is going to crash and it might have a small rebound and then it's going to slide down some more. A test of sorts will happen sometime in the afternoon. It might stock falling but then where will it go from there? The best case scenario is a recognition that investors got it all wrong and the stock ends up flat on the day. Yet there might be more of a downward dumping of the stock on the close followed by a selloff on tomorrows opening. Should option players be jumping in to play the upside on next week's Calls? That is the question. Here is a look at Boeing on the days after a crash. Day two after the crash was equally as ...
Read more

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 slightly 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-ma...
Read more

News on Polestar , Lucid (Trading After A Reverse Stock Split) Plus Ford News And Vinfast

Image
Look at the one year chart on Polester. Now it's one month chart. What's going on? It's confusing. It was down $.36 cents on the week. If you want you can spend $.20 or $.25 on Puts and hope that the company goes under in the next five or six months. They recently raised more money by releasing more shares so it's running out of options. You can't run at a loss forever and this news will most likely scare off potential new car buyers. This actually is a low number of outstanding Put options. The consensus seems to be that it is not game over yet. Lucid started trading this week on a "one-for-ten" reverse stock split. Here is its one week chart. It was down $1.39 on the week. It's also going to struggle. Both of these stocks have challenges ahead. On a more positive note here is a chart that looks kind of perky. Ford on the week. The stock was down $.03 cents on the week and it was the 3th highest in share volume trading on the NYSE. It appears...
Read more