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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 ...
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Fun With Numbers. A Stock Named "Super Micro".

Stocks trading in the $1,000 per share price range will have options trading on them. What happens to "one-day-to-go" Put options on a $1,000 priced stock that suddenly drops to $800.00 in price in one day? Case in point is a stock called "Super Micro" and it is an A.I. play. The answer to this question is at the bottom of this blog. What I am about to show you happened on Friday February 16th. It was such an obscure situation it wasn't really playable.
This isn't the kind of stuff I follow however I just want to show you how extreme option trading can sometimes be. This was an option series which was $50.00 "out-of-the-money" at the start of the day. Look at how like 10,000 contracts traded on it in just that one day!
The Put option jumped up 1,886 % in one day! That doesn't happen very often. A contract trading at the low of the day at $181.00 went to a high of $14,877.00 .

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Living on Kraft Dinner?

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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