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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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Nio And An Earnings Report

Todays action is that a quarterly report came out showing that their car production number were down for the quarter. I have talked about this company before. Back on June 13th I wrote about the stock jumping on the news that their prices were coming down. Last November 28th I wrote about production output increasing and I wrote about the company on March 11th, 2022, and Feb 27th, 2022 when it was trading at $20.94. Back in November 2020 it was trading for over $60.00. One car they race is the fastest electric car in the world. Here is how things looked this morning after this report.
More news.
So now what. It's one year chart.
Now this. Look at how it dropped on the opening.
Now this. Nio was down $1.16 nine minutes into the opening action.
So what make of all this. Production is off, the stock is now discounted, buy "Calls" like five months out for protection and try to get a quick rebound. Here is what happened.
In at $163 and out at $238. Nio is not going away and this morning's dip was an overeaction. Plays like this are more common than you might think.** Here is a look at it a few days later. Mathematically it's inprobable that the "open interest" number has remained unchanged.

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