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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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Polestar and Ford

Polestar is tough to play because a ten or twelve dollar stock takes good news to make it go up. With no news the stock just goes sideways. Rememmber last week how Ford was on a terror and in my last blog I said I don't like buying Call options on a Monday that expire at the end of the week. Ford dropped fifty-nine cents yesterday creating an opportunity to get in today and hope that it rebounds.
I don't generally like to pinpoint trading trading opportunities however the good news story on Ford is still the same today as it was last week.

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