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Walmart Again

On Monday I did a blog on buying this week's Call options on Walmart for a morning move. Today is now Thursday and there was a big sell off in the markets yesterday. Tesla sold off for example and here is what happened to it. Today it is slightly rebounding as are so many other stocks. Thursdays however as oftened mentioned in recent blogs are not a good time to be purchasing one day options on stocks that expire the next day. Times change. In less chaotic times that's not always case. In the last few years there would be known upcoming Friday morning events like the release farm payroll numbers or other economic readings that would move the needle on the markets going up or down on on a Friday morning. In those markets it paid to get into option positions before the closing on a Thursday to get out on the Friday morning bounces were caused by the release of these premarket reports. So how is any of this revelant to Walmart's trading today? Well, there was a whole bunch o...
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The Chaff From The Hay - Deere

Here is Wall Street putting a spin on farming.
What does all this mean for Deere and how this stock trade? Look at it's one year chart.
I have talked about options on Deere before. It's options are thinly traded and money can be made taking postions thirty days out and guessing right which direction it is going to go. Stories like this can help to change the needle. Now I would like to show you an example of an October "out-of-the-money" Calls.It is buying one months of time. Deere is at $372.00 and it would have to go up to $385.00 just to break even. Look at the chart. Is that a reasonable expectation? On first glance you might say that this series of Call option is to expensive. You might also say look at how insignificantly small the "open interest" is.
Let's now move forward one week and show a one week chart on Deere and revisit these Call options to see where they are now trading.
Ouch! That's what happens when Deere drops eighteen dollars in one week and your caught going the wrong way. Deere Calls and Puts can be good vehicles to use to catch directional moves in volatile markets.

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