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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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Caterpillar and Livewire

So Caterpillar had a fantastic earnings report two days ago and the stock tanked $16.00. Go figure. Read my previous blog. Here is how the stock is rebounding back up again.
In a recent blog I wrote about "out-of-the-money" Calls on Livewire. I showed what the April 2024 7.5 Calls were trading at.
Given that they are thinly traded one would of had to purchase them by offering close to the asking price. Now read this recent news, Livewire is lowering their prices.
How can a company losing money cut their prices? How can a company losing money have their share price go up? Good questions? Maybe their EV motorcycles were just to expensive to begin with.
Now here is how the 7.5 Calls for April 2024 I talked about on Oct 21st are now trading at.
They are now "in-the-money" by $2.64. Everyone missed the boat on this one. I also note that the 12.5 Calls for April have now attracted some attention.
Trading in options that expire five months out on stocks in the $8.00- $10.00 range can be an extremely lucrative adventure.

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