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A Random Walk In The Park On A Monday Morning. A Caution. Monday Mornings Are Often Not An Option Players Best Friend

Let's start with this. It's now 10:26 a.m. A bet on Caterpillar rebounding by the end of the week. There are no takers. Why have to watch the screen for the next four days in agony waiting for a rebound which if happens is just a "break even trade"? But Wait. I made a mistake. The market is actually now down 668 points. What else can we look at? Interactive Brokers. These kind of stocks always do poorly on days with the threat of margin calls. Yet there is something interesting about the printout I am about to show. It is that these options are "one-month-out" Calls. These longer term options trade differently than short term options. (these options trade in one month intervals). If the stock we are following stops it's freefall the value of the options will nudge up ten, fifteen or twenty percent. A seven dollar option Call might creep back up to $8.00 or $9.00 at which time it could be sold. In contrast with a five day option a slight reversal in ...
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What Do You Do On A Strong Opening?

There is not much you can do because you have missed the boat. Look at these charts this morning.
What an opening. Caterpillar went on to close the day out up $17.20.
A crazy opening. Now look at this. A Costo 640 Put at 9:44 a.m.
Now look at how this Put closed the day.
When you see a stock struggling in a market on fire to the upside it means it could be a play. *** Here is Costco on the opening the following day which is a friday. In these kind of markets you have to take profits when they are there.

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