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A Random Walk In The Park On A Monday Morning. A Caution. Monday Mornings Are Often Not An Option Players Best Friend

Let's start with this. It's now 10:26 a.m. A bet on Caterpillar rebounding by the end of the week. There are no takers. Why have to watch the screen for the next four days in agony waiting for a rebound which if happens is just a "break even trade"? But Wait. I made a mistake. The market is actually now down 668 points. What else can we look at? Interactive Brokers. These kind of stocks always do poorly on days with the threat of margin calls. Yet there is something interesting about the printout I am about to show. It is that these options are "one-month-out" Calls. These longer term options trade differently than short term options. (these options trade in one month intervals). If the stock we are following stops it's freefall the value of the options will nudge up ten, fifteen or twenty percent. A seven dollar option Call might creep back up to $8.00 or $9.00 at which time it could be sold. In contrast with a five day option a slight reversal in ...
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A Catputs Special. Making Nickles And Throwing Away Dollars

Look at this action today. I thought I was smart buying a Put on Boeing at 10:47 a.m. as it was charging upwards. Then at noon I bought a Put on Deere when it was going sideways and got out an hour later at a slight profit. Just a normal day.
Making $100.00 when I could have hung in and made $1,500. Deere had a sell off. Put option players often dream of being be part of sell-offs like this. Deere had a ten dollar drop in two hours! Why was I determined to get out so early? One thousand in this kind of trade would have made $10,000 which would be a nice way to end a week. I wait weeks and weeks for action like this to happen. I need a drink. How was your day?

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