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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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Sundial and the Lazy Way To Play The Markets

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In a blog of May 8th I talked about the bizarre number of shares outstanding in Sundial. It has 2.4 billion shares outstanding and the company is sitting on over one billion dollars in cash. Thats crazy for a penny stock. Back in late 2020 it was a meme stock and traded upwards of three billion shares per day! Now its a stock some traders use when the markets are extremely oversold and bounce 500 points on an opening like it did this morning. Look at this mornings action. Over 33 million shares trade by 10:49 a.m. in the morning. A $30,000 investment on Friday would be worth $34,000 this morning. It may sound like a crazy way to try and make money however the liquidity is there. As for options on this stock there are some however they start with a striking price of $.50 cents and then $1.00 and $1.50. What that means is that many of these series are to far "out-of-the-money" to be playing. Once again, this is a playable stock in extreme oversold positions like we witnessed...
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Exxon Mobile - Numbers On Option Prices Swirling In The Air

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Is this a game to hard for the little guys to play in? I don't usually follow options on Exxon but I played them often forty years ago when I was a stockbroker. Back then the spreads on options were in 1/8 th's. Sometimes the back office would skim an 1/8 off the ticket fills especially if the ticket was for like ten contracts. Exxon had a big jump today. People again are talking about the price of oil. Might it retrace half it's gains? I note that in the last six minutes of option trading on the day today (Tuesday June 7th) these option prices remained unchanged. That's a bullish signal as day traders were not anxious to cash out. Let's see what happens next. I jumped in and watched the "oil news". Every hour a new article would seem to pop up about why it is surging. Is it surging or spiking? It's a game most people should not being playing. It's dangerous and it's price swings are impossible to predict. I got in on Tuesday and on Wednesda...
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