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Living on Kraft Dinner?

What does the word disconnect mean? As a verb it means "to sever or interrupt the connection of or between; detach". Option trading - one day options - is a disconnect from the world. What happens to slightly "out-of-the-money" Call options on Costco when the stock shoot up thirty dollars on the day? I will show you what happened on Friday to Costco Calls and the options on a few other stocks I frequently watch. What a disconnect from the real world. But before that a look at how the indexes traded. 1) Costco. It's five day chart and a look at how three of it's option series moved upwards in one day. You may not know how to read these printouts but try to read the highs and lows on these option pricings. One printout shows an "at-the-money" option which means you are buying a contract on the stock, good for one day only at a locked in price equal to (or very close to) what the stock is currently trading at. The other two contracts shown are ...

Ford, Deere, Home Depot and Lowe's

Will Ford jump again this week? Here is how the stock Ford looks in the premarkets Sunday night followed by how Ford traded on Friday January 7th.
Will it jump up again this week? Here is it's five day chart and here is a look at the Ford 24.5 Calls which expire this coming Friday.
My answer is yes I think it will move up again this week however I am not a fan of purchasing Call options on Mondays on options which expire at the end of the week. So no, I wouldn't be trying to buy in on Monday's opening. I might be wrong but that's the way I think. What will I be watching this week? Deere on the downside. Look what it did last week.
Lowe's and Home Depot had bad days last week just as analyst were in the process of upgraded both of these stocks.
Look at how low the volumes were in these two Put series last Friday. Trying to play them now either way is a bit of a trap. Earning reports will be coming out and retail stocks are now difficult to play. ** Scroll up to the top left and press the three line icon to read my previous blog on electric cars.

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