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Nvidia And Last Day Friday Afternoon Option Trading

First, the five day chart on Nvidia. Look at the volumes of option trading in these Calls and Puts at noon on Friday. These options expire today. Now here is how the DJIA is doing at 12:01 p.m. Look at the huge number of Call options traded this morning. With markets up and the DJIA down what would logic tell us to do? Buy the Puts. Look at these two Put printouts on Puts that expire today. Look at how cheap the "out-of-the-money" Puts are. Experienced option traders know that the risks in buying these is high, to high to take serious. What's more inticing are the "in-the-money" Puts. In this case they are the 167.50 Puts. Let's now look at it's current one day chart at 12:15 p.m. Had you looked at the 167.50 Puts around 10:40 a.m. they were half the price they are now. Sure it's all somewhat of a guessing game however I want to point out than with one day options the timing of inflection points, meaning stocks making reversals on the day usual...
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Could You Play Disney Calls Last Friday After The Stock Jumped, Hoping For Another Bounce On Friday Morning ?

Here is how Disney traded on Thursday. It has been a dog of a stock for years for a hundred different reasons. It also has a hundred different moving parts which when dissected could unleach value. It could be a $200.00 stock by this time next year. So after looking at this chart do you think and second wave of buying might be in the cards on it's Friday morning opening? Would buying Calls be wise, Calls that expire the very next day?
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Can you see how the $110 Calls closed at $1.21 on Thursday after a wild ride all that day. Notice the closing "open interest". It's less than ten percent of the volume of the daily trading volume. That tells us that most of the traders don't want to take the risk to be in the game. Would you expect a Friday morning pop and would the $110.00 series be the one's to play? Here is the answer. First the chart of Friday's trading.
Now here is what the $110.00 Calls did on the day.
If you think next weeks Calls are more promising here is how they closed out the day on Friday. It's something to think about. The 30 day out Calls or longer might be better.
Disney was up smartly on the week. Do your research as to why.** A late Monday morning update, Feb 12th. Would you have the guts to hold onto your Call option over the weekend hoping for a second way of buying power to come in?
The options more than doubled.

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