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Why It's Difficult To Play Options With Four Trading Days Left In Them.

The premiums are to expensive. Here is what I mean. Look first at Nvidia. Now look at the price of it's end of week Calls and Puts. Do you see the prices of $7.14 and $720.00? Those are both crazy high numbers. If we look at Walmart it's the very same story. Super expensive Calls and Puts if we are looking four days out. Suprising Exxon with a much more interesting five day chart have options that look somewhat reasonably priced. Look at how few Exxon Puts there are outstanding compared to the Calls. Few traders see any positive Middle East developments. Now consider how this narrative is so much different than the one day action I talked about yesterday on Nvidia's last day to expiring options. One day options offer so much more action. Let's revisit this blog over the next few days or so to add more commentary to this story.
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Will Fisker Survive?

Maybe. They have whimical t.v. commercials. I want one, but why they make claims to using recylicable materials in their vehicles is something I don't totally understand. Here is it's 5 year, 30 day and 5 day chart.
Image buying near the top and then averaging down? What a mess for existing shareholders. So what is happening now? Auto Trader in Canada has two used one's for sale. If the company goes under will replacement parts be available?
Fisker now needs more $$$$ to survive. Is the next step finding a partner and / or issuing more shares? Their product lines are strikingly beautiful and their name does have some brand recognition.Yet there is a big probem.
A loss last year of $762 million. That's a crazy big chunk of money. How did they get themselves in such a big mess? Now with the added bad publicity of potentially going bankrupt the path forward is even that much more difficult. .
Miracles have happened. Look at how Canoo, another struggling E.V. maker regained some ground this week.
Now this. Fisker Call options. They are pretty stupid to be looking at given that a drastic reverse stock split is probably imminent. Look at what happened to Faraday Future Intelligent Electric Inc.
A one week pop the $.30 cent level would make these options double. (You can't go any further out that September Calls). Might Fisker rebound to $.30 cents per share? It was there only a few days ago. Guess what? It's not worth the risk. So what even if it does. The real money was made in shorting it months ago. Stick to Caterpillar Calls and Puts. Caterpillar is not going to go away anytime soon. ** A March 18th 9:28 a.m. update.
Now this.
A March 26th update.
An April 12th update.
The short sellers win.

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