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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 ...
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Biden -Tilray - Thank You Joe

Look at this chart on Tilray.
On Thursday morning I noticed that one of my screens tracking marijuana stocks showed everything jumping up. That has never happened in recent past so I knew something was up. Can you see the little jump I am talking about on the five day chart above? I jumped in and then I jumped in the last hour of trading. Here is the option trade I did. I purchased options that still had a few months time in them.
The bid of $1.22 ask $1.45 was actually a Friday morning opening reading. I sold out to quickly. Better safe than sorry. Now here was the news.
Here now is how Tilray closed the next day, a Friday.
If your not up to speed on Tilray, here is it's five year chart. So much money has being wasted to get to this point. All these stocks in this sector are like wounded soldiers still standing. Will todays good attract additional interest? That's the new question.
So what are some late to the party option players now doing. Some are looking at the 3 series of Call options with a January 2023 expiracy date the mindset the stock will pop again. They might be right. Buy the 3 series and sell the 5 series against them. Here is how they traded on Friday.
I like Village Farms better as I recently read that they provide the Ontario market with the top two brands of marijuana. One brand has a 16% market share and one brand 15%. One final note. With the profits I made on the above trade I purchased Sundial Call options. I have written about this company before. They are based in Western Canada and are now also investing in the booze business. Their focus this year has being to acquire more retail outlets.
Options on two dollar stocks are more interesting than options on three dollar stocks.

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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 ...
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