Featured

Living on Kraft Dinner?

What does the word disconnect mean? As a verb it means "to sever or interrupt the connection of or between; detach". Option trading - one day options - is a disconnect from the world. What happens to slightly "out-of-the-money" Call options on Costco when the stock shoot up thirty dollars on the day? I will show you what happened on Friday to Costco Calls and the options on a few other stocks I frequently watch. What a disconnect from the real world. But before that a look at how the indexes traded. 1) Costco. It's five day chart and a look at how three of it's option series moved upwards in one day. You may not know how to read these printouts but try to read the highs and lows on these option pricings. One printout shows an "at-the-money" option which means you are buying a contract on the stock, good for one day only at a locked in price equal to (or very close to) what the stock is currently trading at. The other two contracts shown are ...
Post a Comment

Can You Catch Ford Struggling On A Thursday After A week of Negative Talk About Excess EV Inventory? Then there Was News

First the five day chart and a Thursday morning early trading chart. Timing is everything.
Is a jump upwards by tomorrow possible or a slight rebound in the next few hours or into the early afternoon? It's really the next ninety minutes of trading which could be a sweet spot.
To be continued. It's now just after 11:30 a.m. Can you see the bid and ask are up?
Now Ford around 1:52 p.m. The market is softening up. Now would be a good time to get out and call it a day.
In at .21 and out at .28. Do it on a trade size of 50, 75 or 100 contracts. It's not much of a gain however its a gain in U.S. money and it was a play on an oversold morning situation. A lagging stock in a strong market. There were small spikes around noon as news came out.
We will check back later to see what happened to this series on the closing. Hanging onto these Calls going into the last day of trading is not a smart thing to do.
Look at how wide the bid and ask are now at the closing. The market makers are trying to give themselves some protection in case the markets pop on the Friday opening. Anything could happen tomorow. **** Payroll numbers came out on Friday morning. The markets are up. Anyone with guts who banked on an opening rally in the Ford Call options we where watching did well.
Also note a low on the opening of .18 cents. What's that all about? Someone had an order in for a premarket trade. That's a topic for another day.+++++++++ Now let's jump ahead to the end of the trading session on the following week. It's Monday was a holiday.
Same old game and Ford has only moved ten cents on week! That explains why the option interest numbers are down by half. Fewer traders than last week are thinking about Calls.

Comments

Post a Comment

Popular posts from this blog

A Fireside Chat - One Year Options and Thirty Day Options. Which is Better?

Image
Some say to think small, not big. Trying to play Disney options is thinking big. It is a stock slighty out of favor. If we start with it's a three year chart, we will see it is down by about 50% over that period of time. Now it's one year chart. If the stock can break 110 in early 2024 the sky is the limit. It does have a lot of moving parts so anything could happen. Look at these Calls options one year out. One year in options buys a lot of time.They look reasonable. If the stock ever inched up to the $105.00 price level in the three or four months these options would jump up in price by about 50%. Even more if they had really good news. Yet it's the "what-if" aspect of the equation that castes such a trade in doubt. "What if" stories just don't cut it. There are to many variables in play. Then again, why are we even thinking of long-term Call options after a December's rally? Let's switch gears. If consumers are out spending for X-mas...
Read more

Trump Media Technology Options With Three Days To Go.

Image
On Tuesday just after 3:00 p.m the Trump Media Technology Options had stop traded again. What is the next 24 hours going to bring? Who knows. So many option traders follow this stock and most are afraid to buy either Call or Put Options on it because their premiums are so expensive. If Trumph wins the stock should soar and if he loses the stock will tank. The option premiums are priced expensively in both directions. Here now is how both the Calls and Puts traded on the opening today. First the Calls six minutes into the opening. Now the Puts. Now a look at how these options played the day. With a "stop trading" situation the option session ended a little bit early as evidenced in these following readings. Notice also how low the open interest number is in these Puts. Option traders for the most part opted to stay away from this situation. Now this. Trump wins. Here is how the 38 series of Calls traded just after the opening at 10:11 a.m.. The stock is up however the...
Read more

Living on Kraft Dinner?

Image
What does the word disconnect mean? As a verb it means "to sever or interrupt the connection of or between; detach". Option trading - one day options - is a disconnect from the world. What happens to slightly "out-of-the-money" Call options on Costco when the stock shoot up thirty dollars on the day? I will show you what happened on Friday to Costco Calls and the options on a few other stocks I frequently watch. What a disconnect from the real world. But before that a look at how the indexes traded. 1) Costco. It's five day chart and a look at how three of it's option series moved upwards in one day. You may not know how to read these printouts but try to read the highs and lows on these option pricings. One printout shows an "at-the-money" option which means you are buying a contract on the stock, good for one day only at a locked in price equal to (or very close to) what the stock is currently trading at. The other two contracts shown are ...
Read more