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Walmart Again

On Monday I did a blog on buying this week's Call options on Walmart. Today is now Thursday and there was a big crash in the markets yesterday. For example, Tesla had an insane selloff. Here is what happened to it. Today it is slightly rebounding as are so many other stocks. Thursdays however as oftened mentioned are not a good time to be purchasing one day options on stocks that expire the next day. So how is any of this revelant to Walmart's trading today? Well, there was a whole bunch other stocks that got knocked yesterday that might now rebound back up again together. Look at the chart below of Walmart and see how it was off a couple of dollars yesterday. Could you buy in now and get out later in the day? Fantasy thinking, one might say. Could it sneak up even one dollar? Now this. The stock mid morning is now merely trading sideways. Now look at this, the 93 series of Calls. (On Monday we were looking at the 94 series of Calls). At 10:22 a.m. the stock is up six cents...
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Caterpillar Calls. A Classic Trading Situation.

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Early indications were that the markets were set to rally on Tuesday March 29th. Most of the stocks that is except for Caterpillar. I scurried around looking for news as to why Caterpillar was trading lower in the premarkets but couldn't find anything. Caterpillar, in spite of it's size often seems to trade in a bubble. It's movements up and down seem so random. Institutional shareholders move huge blocks of stock in very selective ways. Within only a few minutes of trading the markets were up strongly but Caterpillar was going in the opposite direction. When you look at it's opening chart below one would have to ask themselves if there would be any support at the $219.00 dollar price level. It's the falling knife syndrome. If you're looking for a reversal when do you buy in? With the markets so strong one would think it's only a matter of time before the stock stops falling. Well look at the volume of trading on the 220 Caterpillar Call series (that expi...
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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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Nio Again- Day Trading Options on This Electric Car Company And Part Two Of Trading In the Premarkets.

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Yesterday's blog was about using the premarkets to sell out at a profit two Nio Puts I was holding. "Nio" rallied on Wednesday and tanked on Thursday. I got out of my position with a premarket selling ticket which all options traders can do. The trick in making these types of trades is that there are no bids and ask on your screen so you have to pick a price you're happy with and then live with the consequences. At the end of this blog I will show you how I am trying to do this again before the market opens this morning on a different stock. It's Friday March 11th and the markets open in a few hours. This time it will be a Call option on Boeing I am trying to sell again into the premarkets. I would like to now explain a failed attempt to again trade Nio Calls in yesterdays afternoon markets. I will show you Nios one day chart and the trade I did. It is my experience that it is not wise to "go back to the same well", meaning trading the same stock over ag...
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Ford This Morning After A Biden Speech

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What an opening chart! Here also is a different chart showing how Ford closed the day yesterday. It's the very same chart minus this morning's spike. It's amazing how a Presidential speech the night before can help to move the markets in certain stocks in this price range. Now lets look at how this affected the 17 series of Calls. What do you see in the above printout? At 2:17 p.m. yesterday before the speech the Ford 17 Calls were trading at .24 cents or twenty four dollars a contract. I was watching them. Now look at what they are trading at this morning, the morning after the Biden speech and look at what where they were traded at the end of the day.
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