Featured

Tesla And The Play Of The Week - An Easy Read.

Here is Telsa's five day chart. Can you see how it spiked to the upside on Friday morning before it tanked? Can you see how as the day progressed it dipped down to the support level of the $210.00 range? Here is its one day chart. Now this. Lucky in all this action are all those individuals who purchased one day Puts on Telsa in the first few minutes of trading. Look at how these Puts reacted. The lows of the day happened in the first few minutes of trading. Look at the pecentage gains. In the last example a $1.00 option went to $190.00 in one day. Catching one trade like this could make up for twenty bad trades. What's all this talk of Ai trading? Moves like this could blow up the exchanges if thousand of trading platforms could recognize this could happen. This was one of the best option trading opportunities of the decade.
Post a Comment

Sept. 23 th. The DJI Up Over 800 Points and Caterpillar Jumps

I played Boeing Calls three times this week and won everytime. In a blog two days ago I reported I don't like playing options on Thursday that expire the next day. The reason being is that if you guess the wrong direction you will lose all your money. Failure is harsh medicine.That being said this time I was watching Caterpillar and it opened down as did the markets. Inflation report numbers came out and everyone got it wrong. I jumped in. Look at how it crashed on the opening.
I got in at 9:39 a.m. Look at the chart to see where the stock was at that time. Call me crazy. Here is a better "one day" look at the chart.
Now look at when I got in. I got in at 9:35 a.m. and paid $250.00 for one contract. The low on the day was $2.05 and that was before I got in. I had just made more than twice that amount in Canadian dollars paying Boeing so that's the way I justified my actions.
A drop of like six or seven dollars. For the first ten minutes after I got in I thought I was smoked! How could any stock rebound from a drop that large? Then it started to rebound ever so slightly and I just wanted my money back. The market could roll over and sink again. Anything could happen. In my quest to get out I fought with the option makers and cancelled two sell tickets before I got filled. Can you see above how that happened at 10:11 a.m. and at 10:21 a.m. I cancelled and resubmited a sell ticket? I was chasing the markets down. Finally at 10:21 a.m. I was out. Five minutes or so later it started to explode upwards.
Notice these options hit a high of $9.74 on the day and notice that only 125 contracts traded. Caterpillar has over 128,000 employees. Do the math. Only a small percent of them are playing options on their companies stock. Life is what you make it. Most people don't play options. Today I went to the races and I got spooked as the markets took a slight pause one hour into the morning trading.
Location: 911 A2, Edwardstown SA 5039, Australia

Comments

Post a Comment

Popular posts from this blog

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 slighty 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-mas
Read more

The Crazy Last Day of Option Trading In Tesla.

Image
First, look at it's five day chart. Big jumps everyday. If you try and jump in and play the downside everyday you will quickly get beat up. Here for example is one look at the Tesla 235 Puts on Wednesday at 9:34 a.m., only then to check out the same Puts a few minutes later at 10:15 a.m. How do you know what to do? Well you don't fight stocks running up over $8.00 in the first thirteen minutes of trading. Now here is how these Puts were trading at 12:59 p.m. The game is to sell the Puts when the stock is rising and then cover them to be out of the markets at a profit by the end of the day. It's not the small fish playing this game. Now today is Thursday July 4th and the markets are closed. Tomorrow is Friday July 5th.These Put options will be expiring at tomorrow at 3:00 p.m. If Telsa opens down two or three dollars on the opening there is the potential for a small reaction. They will still however be extremely "out-of-the-money". They might jump a touch i
Read more

I Wonder How The Back Office Is Going To Handle My Complaint

Image
The blog is about dealing with the back office of the brokerage company I trade with. This story happened today. Todays trading session has closed and I just made a telephone call to them just after the market closed to voice a complaint over how I feel I got short changed. Here are my background notes. 1) It involves trading the 370 Boeing Puts that expire at the end of this week. I bought in at 10:08:34 a.m. and sold out at 2:59:38 p.m. I was stuck in this position longer than I had hoped. I got lucky and did O.K., however that is not the point. 2) Here are my two "in-and-out" tickets. Two contracts in at 10:08 a.m. at $163.00 each and two contracts out then "at-market" for $365.00 each at 2:59.38 p.m. Now here is Boeing's one day chart. It dropped precipitously from 2:59:00 p.m.to 3:00:p.m. I just happened to be watching it at the exact time of the crash. That's when news came out that the "FAA opens Now a Boeing Inquiry over 787 inspections"
Read more