Featured

Walmart Again

On Monday I did a blog on buying this week's Call options on Walmart for a morning move. Today is now Thursday and there was a big sell off in the markets yesterday. Tesla sold off for example and here is what happened to it. Today it is slightly rebounding as are so many other stocks. Thursdays however as oftened mentioned in recent blogs are not a good time to be purchasing one day options on stocks that expire the next day. Times change. In less chaotic times that's not always case. In the last few years there would be events like the release farm payroll numbers or other economic numbers that would move the needle on the markets going up or down on on a Friday morning. In those markets it paid to get into option positions before the closing on a Thursday to get out on the Friday morning bounces were caused by the release of these premarket reports. So how is any of this revelant to Walmart's trading today? Well, there was a whole bunch other stocks that got knocked do...
Post a Comment

Disney - Part Two And Three- "A Double" or More On The Openings

It's best to read my last blog first. Disney might be popping.
Here is todays full day of trading. It's a Monday. Does that look like a big pop to you? Not really, but now look at what it's five-day chart looks like and that will help make it a different story. Call options on it, the 110 Calls to be more precise, that expire this Friday doubled early in the morning from their previous close on Friday at 4:00 p.m.. I explained this in my last blog but I will show it to you again. Can you see on the chart above how it moved smartly up in the first hour or so of trading?
Here is how they traded on Monday Feb. 12th. They popped on the opening and then cooled down towards the end of the trading session.
What happened today which is so much different than what I saw happening all of last week? Well, the open interest at the end of today's trading in this series of Calls was considerably higher than the open interest at the end of each day's trading activity last week of all of the other stocks I was following. In this case it could be because the traders getting out on this morning's uptick with a well deseved profit (it takes guts to be holding Calls over the weekend) were then buying back into this same series of Calls again, perhaps even in larger contract numbers towards the end of the day. If so,that's not a positive thing to be happening. It could hinder the stock from jumping up tomorrow. Now look at a current chart of another company in an unrelated industry.
It's also a current five day chart. My point is that sometimes a stock that goes sideways for a long time can suddenly suprise. Disney may now be in that camp. *** Now Tuesday's action. It was a rough day for the markets.
......
.....
........ Some traders were getting out as the stock held firm on a day the D.J.I. was off 525 points. Now Thursday. We are getting down to the wire as to when these options expire so the interest in this series is dying out or option traders are moving forward to next weeks options with the same or slightly higher striking price. Notice the open interest has dropped considerable. With one day to go the risk of holding onto an overnight position is just not worth it. Here is what happened today.
Here is how they closed the week.
Now the Calls.
They were a great series to be trading all week. *** Bad news one week later. The party is over. Last week's repeated great trading opportunities are over.

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

Another Earnings Report - "Roku" - Thursdays and Friday Trading.

Image
Please read this Roku "earnings report" blog. Roku was down fifteen dollars in the first hour of trading today after the release of it's third quarter earnings report. Here is a 10:52 a.m. look at one series of Puts that doubled in price on the opening as a result of this sell off. In my last blog on Caterpillar I talked about points of inflection where stocks rebound after bad news. This time an inflection point may not be in the cards. Caterpillars earning were just shy of expections but nothing had really changed. The world still needs their products and they are still a dominant player in their industry. Roku is a different animal. Their subscribers are a fickle bunch. Companies like Roku and Netflix go up and down all the time. Roku now is just back to a level at which it was trading at earlier this year. I don't know how to interpret their financial statements. Things still look pretty good for them to me. Once again here is a look at the increase in the value...
Read more