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Walmart Again

On Monday I did a blog on buying this week's Call options on Walmart. Today is now Thursday and there was a big crash in the markets yesterday. For example, Tesla had an insane selloff. Here is what happened to it. Today it is slightly rebounding as are so many other stocks. Thursdays however as oftened mentioned are not a good time to be purchasing one day options on stocks that expire the next day. So how is any of this revelant to Walmart's trading today? Well, there was a whole bunch other stocks that got knocked yesterday that might now rebound back up again together. Look at the chart below of Walmart and see how it was off a couple of dollars yesterday. Could you buy in now and get out later in the day? Fantasy thinking, one might say. Could it sneak up even one dollar? Now this. The stock mid morning is now merely trading sideways. Now look at this, the 93 series of Calls. (On Monday we were looking at the 94 series of Calls). At 10:22 a.m. the stock is up six cents...
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Costco Again. Options On It Are A Game Only For The Pros / And A Second Look at Roku

Last week I did a blog on Costco. It had an earnings report come out last Friday and the stock dropped $60.03 dollars on the day. Was it easy to play the downside? No,as I pointed out the Puts were crazy expensive on the day before the crash. How expensive were they? Well if you check that blog you will see the 762.50 Puts closed that Thursday at $23.09 when the stock closed at 785.59. What does that mean? It means the stock would have to drop $34.47 in just one day just to break even. Who is going to wager good money on that kind of a bet? It wouldn't be a fun game to watch. So the bottom line is I think, that options on stocks in the $700 and $800 and $900 dollar range are just to expensive for the small fish to play. Small option players are better off fighting the Ford and Nio price range options or options on stocks in the price range that Boeing, Caterpillar, Disney, McDonald's, Telsa, Roku and Moderna command. Stocks also where there is a bit of a storyline of sorts to follow. Now this brings us back to the action in Costco today which is a Tuesday. Look at how Costco rebounded!
Something different is now unfolding. The stock is rebounded. Look at the pricings on these Calls today on a Tuesday. These option now expire in three days. Yes these Calls were a touch "out-of-the-money" but we all know how explosive to the upside this stock can be.
Now look at the one day chart. Can you see how the blast-off happened in the fist fifteen minutes of trading. Anyone following the opening markets would have watched it creeping up.
Let's now change our focus and look at Roku. Here is it's thirty day chart. Look at how different it is. I blogged recently about what happened to make it fall.
Look now at these two series of Calls with a $65.00 striking price. One is for a week Friday out and one buys you an extra week beyond that. What do I want you to observe? The open interest numbers versus the daily volumes of trading. The open interest numbers are consistently higher. Yes some traders are day trading them while other are more patience in their approach and holding them overnight. Yet a patience approach over the last few week has being a recipe for disaster. What's nice about these options is that they are affordable and do make decent price swings in this relatively range bound mode. They are something to consider. Roku is not going to go away as it has 80 million subscribers. Yes 80 million.
Just something to think about. Don't buy in on my advise. Just recognize that trading options on stocks that are range bound present their own set of challenges. To be continued.**** A next day 11:27 a.m. observation.
$175.00 to $231.00. These options are playable. Now a March 14th look.

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