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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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Three Chart Patterns To Compare.

Lets see what chart pops first. Which one of the three following charts do you do think has the best short term upside potential)? 1)
2)
3)
Here is what the first chart looks like at the close three days later.
Can you see how it spiked yesterday to really end up where it was seven days ago? What stock is it? It's McDonalds. What a wonderful one day rally it had yesterday. 2) This time the number two stock on our list is Boeing. It jumped today after two days of slightly edging up.
Look at how the 180 series of Calls that expire this week jumped on the day!
One thing to notice is how it seemed to test it's lower resistance level this morning before it quickly blasted off. One could say that it helped that the D.J.I. jumped 300 points on the day however the other two charts didn't jump. The third stock is Roku. In it's above chart it seemed to be firmly in a sideways moving pattern. It still is. Patience is a virtue.
Is there anything to be learned from this? Well let's do another blog like in the near future to see what the results are like. Boeing (and Caterpillar) are both in price ranges that sometimes swing like this and Boeing is particularly susceptible to news releases which can be either good or bad. Caterpillar not so much so.

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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 ...
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