Featured

Nvidia And Last Day Friday Afternoon Option Trading

First, the five day chart on Nvidia. Look at the volumes of option trading in these Calls and Puts at noon on Friday. These options expire today. Now here is how the DJIA is doing at 12:01 p.m. Look at the huge number of Call options traded this morning. With markets up and the DJIA down what would logic tell us to do? Buy the Puts. Look at these two Put printouts on Puts that expire today. Look at how cheap the "out-of-the-money" Puts are. Experienced option traders know that the risks in buying these is high, to high to take serious. What's more inticing are the "in-the-money" Puts. In this case they are the 167.50 Puts. Let's now look at it's current one day chart at 12:15 p.m. Had you looked at the 167.50 Puts around 10:40 a.m. they were half the price they are now. Sure it's all somewhat of a guessing game however I want to point out than with one day options the timing of inflection points, meaning stocks making reversals on the day usual...
Post a Comment

Electric Vehicles - A Race

Back on January 8th I wrote a blog called "Dreaming Electic Cars". In it I mentioned the electric car company called Polestar. Here I am again on this topic. Countries like Norway and Denmark are miles ahead of us when it comes to North American new electric vehicles sales. The percentage of electric vehicle sales in these two countries is appoaching the 60% mark. Here once again is news on Polestar which trades under the name "Gores Guggenheim" It's price is little changed from my January 8th blog.
The second company is Sono Group N.V.. It is based in Norway and early investors in have not done well.
Now here is a chart showing the stocks price.
It is noted that it needs 301 million dollars in additional funding to get things up and running and if all or some of this money comes from the issuance new stock, that would put a lid on this stock moving up in price in the near term. Yet wait, they just reported their first ever profit. It's being a long wait.
Finally, I would like to reiterate more comments about the Chinese electric car company called Nio Inc.. I have mentioned this company before. A week ago it was number two on the NYSE most active list and it was up 10.1% on the week. They are also selling their electric cars in Norway. It frequently makes the most actively traded list. Here is it's one year chart followed by it's five year chart. One of the current worries is that Chinese companies might be delisted from the American exchanges because of their lack of accounting transparencies.
It's this last chart, the five year chart that stirs at the hearts of futuristic thinkers. Might it rebound back up in price again? Nio Calls and Puts might prevent you from sleeping at nights. There is so much to watch in this electric vehicle space. As a further note of interest Nio on the trading week ending April 23 ended up as the 5th highest trading stock by share volume on the NYSE most active list and Sono (SEV) on the same week ended up as the 4th highest NASDAQ biggest % mover. All eyes are now focused on start up electric vehicles. To end this, then there is Vinfast. It's stock is not traded on any North American exchanges.
A May 2nd update.
** To see my most recent blogs scroll upwards the top left corner and press the arrow tab.

Comments

Post a Comment

Popular posts from this blog

Living on Kraft Dinner?

Image
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 ...
Read more

A Fireside Chat - One Year Options and Thirty Day Options. Which is Better?

Image
Some say to think small, not big. Trying to play Disney options is thinking big. It is a stock slightly out of favor. If we start with it's a three year chart, we will see it is down by about 50% over that period of time. Now it's one year chart. If the stock can break 110 in early 2024 the sky is the limit. It does have a lot of moving parts so anything could happen. Look at these Calls options one year out. One year in options buys a lot of time.They look reasonable. If the stock ever inched up to the $105.00 price level in the three or four months these options would jump up in price by about 50%. Even more if they had really good news. Yet it's the "what-if" aspect of the equation that castes such a trade in doubt. "What if" stories just don't cut it. There are to many variables in play. Then again, why are we even thinking of long-term Call options after a December's rally? Let's switch gears. If consumers are out spending for X-ma...
Read more

The Little Engine That Could

Image
Walmart again. It's all I seem to blog about. Here is it's five day chart. The stock keeps going up and the option series are set up in one dollar spreads. Even a fifty cent move on the stock moves the needle on these Calls. Look at how this series of Calls was trading yesterday at 3:00 p.m.. Now here is this same series of Calls just before noon today. Thirty days of upward action like this punctuated by the off day of decline. Now notice the higher volume of trading in the series of Calls with the higher striking price. These are the ones's with more leverage. At the same time look at the five day chart on Costco. The two stocks sometimes trade in tandem. Humpty dumpty sat on a wall .... a had a great fall. Someday soon a fall might happen but what a great ride it has been.
Read more