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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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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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