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"Tony The Tiger" - A Food Stock

The mood of Wall Street is now changing as the reality of tariffs is starting to kick in. Two weeks ago not so much so. Kelloggs had "so-so" earnings come out a few weeks ago and the stock exploded upwards. Note the very last line above mentions the effects of tariffs are not taken into consideration. So many stocks with "so-so" earning reports have jumped in price based on the "lets make America great again" slogan. Deere stock is shooting to the moon as I keep writing about in spite of declining sales in the last quarter. The sentiment seems to be that they are immune to tariffs. On paper they might be. Read this. Americans are struggling to buy gas, eggs and insurance. Total housing starts in the U.S.in 2024 were down 3.9%. Walmart, the recent darling stock in the last four weeks for Call option players woke up this morning with an earnings report which was healthy but with came with some caveats. Here is what happened. Perhaps the U.S. is starting ...

The Concept of Buying Options on Stocks in the Two and Three Dollar Range. Polestar and GoPro

It's all about leverage and successfully predicting which way a stock is going to move. Guess right and you will win big. Yet wait, why not just purchase the stock and put it away and hope that it's going to go up? That makes more sense. Stocks in the two and three dollar price range can be extremely difficult to play, let alone playing options on them. Let's look at two of these stocks. First Polestar. It has an earnings report call coming out later this week. Take some time and listen to it..
ANOTHER STOCK IN THE LOW PRICE RANGE IS GO PRO. It has struggled over the years. There are reasons to think that the company could be changing it's business model.
Now it's chart.
Now it's one year out Calls with a three dollar striking price.
Brian McGee seems excited. Future income streams is something that adds value to a cause. One year is a long time out in the future. Yet then again if you like stocks in this price range just buy the stock and not it's options. Turnarounds sometimes take years to happen. *A Nov 16th update. (eleven days later).
Both the stock and the Call options have jumped. The three series of Calls have done wonderfully well. Polestar in contrast continues to go sideways.

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