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Showing posts from March, 2022

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What Happened to Options On Tesla With Two Days To Go And An Earnings Report

First it's five day chart going into a thursday. It closed at $438.97 on wednesday. Something else was happening on wednesday. It's quarterly earnings report were coming out after the markets closed. This factor means that both the Calls and Puts were priced higher than they usually would be. The 440 Calls going into the opening closed at $14.30 on wednesday's close and the offsetting Puts with the same striking price closed at $15.37. ...... So the $14.30 for the Calls means $1,430.00 U.S. dollars which equals about $2,000 Canadian. Just to break even the stock would have to close at $454.30 which would be a huge leap upwards. It could. As stated in a past blog on two of the last three Fridays Tesla has had an interday price swing of over $30.00 dollars. Let's watch it and see what happens. So really the "small fish" meaning the little guys like us can't be sloshing money around and holding onto contracts like this overnight. But wait. It's the sw...
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Deere and Company - One Of The Most Dangerous Series Of Call and Put Options to Play When There Is Only Hours To Go.

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If you have winnings from a previous trade sometimes you value that money differently. It's difficult to explain why but there are scholars out there who have written books on this very topic. It's like play money or free money that you can now use to make the wildest option trades you can think of. It's money you feel you can risk. It's like being a kid in a candy store with money in your pocket. Everything looks good.There are two stocks that I sometimes follow, Dominos Pizza and John Deere. Both have options available to trade on them however the Call and Put options on the first one, Dominos are near impossible to trade. Why? Well on a Friday morning with options expiring that day on it, how do you predict which direction the stock on the world's largest pizza company is going to go? The answer is you can't. The company is painfully aware that one news release about the price of cheese going up or problems with their ordering apps could send their stock int...
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