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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 known upcoming Friday morning events like the release farm payroll numbers or other economic readings 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 o...
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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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