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"Tony The Tiger" - A Food Stock

The mood of Wall Street is now changing as the reality of tariffs is starting to kick in. Two weeks ago not so much so. Kelloggs had "so-so" earnings come out a few weeks ago and the stock exploded upwards. Note the very last line above mentions the effects of tariffs are not taken into consideration. So many stocks with "so-so" earning reports have jumped in price based on the "lets make America great again" slogan. Deere stock is shooting to the moon as I keep writing about in spite of declining sales in the last quarter. The sentiment seems to be that they are immune to tariffs. On paper they might be. Read this. Americans are struggling to buy gas, eggs and insurance. Total housing starts in the U.S.in 2024 were down 3.9%. Walmart, the recent darling stock in the last four weeks for Call option players woke up this morning with an earnings report which was healthy but with came with some caveats. Here is what happened. Perhaps the U.S. is starting ...

The Concept of Playing Thursday Options Which Expire the Next Day. Part One

Thursday morning trading patterns in the first hour of trading reflect human emotions running high. Could your favorite stocks in the $200.00 and $300.00 price ranges jump up three dollars on Thursday and three dollars on Friday? Wishful thinkings often shared by option traders on Thursday mornings. Yesterday Boeing jumped up over $4.50 and then down over $7.00. Will it jump back up agian today? It's Call options look so tempting knowing what the stock sometimes does. Then there is Caterpillar which was off during the last two days after jumping up earlier this week on government stimulus news. Why isn't that stock flying? This morning I used the "out-of-the-money", the Caterpillar 212.50 Call option series that were like four dollars "out-of-the-money" with one day to go for a short term ride. Was I dreaming? Not really. Caterpillar had a strong opening and these options remained relativly flat because they were so far out-of-the money. I bought in at a penny under the ask (on a five cent spread) after chasing it up with lower bids as it eventually started to rise and then sold out "at market" not to mess around. I was only in the position eleven minutes.( out at 9:26 a.m. Look at the chart below to see what part of the days action I was playing).
Look now at how this stock did on the day and what the 112.50 out-of-the-money Call options did.
I was lucky to catch the action the way I did. Now for a look at something really wild look at this. Today's action in DPZ. Tell me that insiders are playing this stock. What is so strange is the low number of option contracts traded. Look at the price swing in these Calls.
Sixty five cents to eight hundred and twenty. Wow.

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