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Netflix - One Day vs Next Weeks Calls.

It's Thursday and the DJIA is up. Here is how Netflix is doing. Now this. Remember that this stock recently did a 10-1 forward stock split. Things don't look good, why isn't the stock sharing in today's upward glee? In situations like this it's best just to stay away. Look at how cheap the Call options look that expire tomorrow. They look tempting however next weeks Call options offer so much more security. Now this at 12:38 p.m. The markets continue to go up. Netflix continues to sell off. Now I am showing tomorrows and next week's Calls just after noon hour. The options that will take the most heat for the rest of the day will be the short term options. There are decent volumes in both of these series of options. An end of the day report. First the options that expire tomorrow. It would be silly to be in this series of Calls. Now next weeks Calls. Now it's five day chart. One week options are a long way away. Stocks with a bias to the downsi...
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Harley-Davidson

First, I am not a big fan of playing options on stocks in the thirty and forty dollar range. It's not like speculating in Boeing or Caterpillar Calls and Puts with these stocks swinging up or down two or three dollars nearly everyday. Harley Davidson is a thirty five dollar stock. Look at how it is trading so poorly on the good earnings news back at the end of April.
Now here is some of this news.
All the good news was wiped out by the forecasting of a bit of a slowdown in the second half of this year. Investors who bought in early this year when the stock was trading over fifteen dollars higher who correctly anticipcated this surge of earnings must now feel so frustrated. Where are their rewards? Now look below and see where the January 37 Calls are trading at. If the stock gets above forty you would be in luck. That would buy you their next two earnings reports. By then management might see their business in a more favourable light. Yet the chart looks ugly and there doesn't seem to be a support level.* With most option positions "time value" works against you. When you purchase eight months of time and your reasonings for buying in turn out to be correct the time value can become your friend. It is however still a scary position to be considering.

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