Featured

Opportunities Presented by Options on $30.00 Stocks.

Let's start with this chart. It's Pfizer. Would you have expected a pop like this, this morning? Now look at what the Call options did. I don't want to get into a discussion of "Can you read charts" however after one nice rally yesterday and second follow up rally could be expected. The 29.50 series of Calls doubled on a strong opening this morning. "Out-of-the-money" Calls on stocks in the thirty dollar price range call sometimes suprise.
Post a Comment

One Week Options. Are They A Good Bet In Times like This?

Look at how these these four stocks traded last week. 1)
What a great week for one week Call option players on Boeing even though the stock ended up down .83 cents on the week. 2) Roku. Roku hasn't yet recovered from a not so good quarterly report. Roku lost $1.13 on the week. (Netflix in somewhat the same space was up $35.780.)
3) Disney suprised. I talked about that in a recent blog.
4) Now Caterpillar. It was up $12.83
Now The D.J.I. was down .11% or basically flat. In good times Call options can be your best friend. To be continued. Now let us look at the next week's action. Let's begin with Boeing. Here is it's Monday March 4th one day chart.
Look at the buying opportunity which presented itself around 10:00 a.m. Next Roku. Look a how it traded on the day. Can you see how buying in on the opening would have been a mistake? That is a common theme with one week Calls on a Monday morning. Buying into it during the late morning was better.
Now Disney. First it's one day movement.
Note the strong open interest numbers.
Now Caterpillar. Last week it had a strong run up in price so it would seem to be more vulerable to a breather on the opening today.
All this happend on a day when the markets were down.
To be continued. Now a Wedneday after the closing bell update on March 6th. Everything is down.
Two days of going sideways like this is unheard of. Now Roku
It's 30 day chart tells us not to expect to much in the next couple of days.
Now Disney. It suprised last week on unexpected news. Not so much this week.
When the open interest in a series of Calls like this starts to creep up you know the option makers want to see the stock flounder for a few more days. Now Caterpillar. It's down. It still looks like it has some upside.
A March 9th weekend update. Boeing 198.49, Roku 64.50, Disney 110.32 and Caterpillar 339.19. The D.J.I. fell .9%. It was the second weeek that this index went sideways. Let's check in on these four stocks at the end of next week.

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

The Crazy Last Day of Option Trading In Tesla.

Image
First, look at it's five day chart. Big jumps everyday. If you try and jump in and play the downside everyday you will quickly get beat up. Here for example is one look at the Tesla 235 Puts on Wednesday at 9:34 a.m., only then to check out the same Puts a few minutes later at 10:15 a.m. How do you know what to do? Well you don't fight stocks running up over $8.00 in the first thirteen minutes of trading. Now here is how these Puts were trading at 12:59 p.m. The game is to sell the Puts when the stock is rising and then cover them to be out of the markets at a profit by the end of the day. It's not the small fish playing this game. Now today is Thursday July 4th and the markets are closed. Tomorrow is Friday July 5th.These Put options will be expiring at tomorrow at 3:00 p.m. If Telsa opens down two or three dollars on the opening there is the potential for a small reaction. They will still however be extremely "out-of-the-money". They might jump a touch i
Read more

Deere Lays Off /Tesla / Eli Lilly/ Home Depot/ Nio

Image
It was announced today, a Tuesday that Deere is going to lay off some of it's workers. Perhaps that news was leaked out last Friday and that's why it could have sold off last Friday afternoon. The stock basically has done nothing over the last three years but some traders love it for it's thirty day swings. I have talked about Deere before. The markets were accepting of this news. In other news Tesla Call option traders are rejoicing. Image getting in two trading sessions ago at $196.00 to watching it shot up to over $230.00? This was (it's up in the premarkets again) the Telsa trading opportunity of the year! Then there is upside movement in Eli Lilly. But then there is this background news. Now this. Talk of a hurricane. Will Home Depot go up? Then there is Nio. It's shares trade huge volumes and the stock has a wide following. Might it trade back up to $6.00? It's down almost half price on the year. One of the problems in trying to anticipate what m
Read more