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

U Tube Videos and Carmax

I am hooked on youtube videos watching podcasts of what is happening in the auto industry. One subsection of this addiction is the Tesla story and another what is happening with the U.S. used car market. Who can afford to finance a used car these days with prices and interest rates so high? CarMax had their quarterly earning report today. Up or down? What do you think? Barron's on the weekend made a few bullish statements. "Analysis expect the company to report a fiscal forth-quarter profit of 46 cents a share on sales of $8.8 billion, an increase of 5% and 1% respectively. Sales should get a boost from tax refunds, which accelerated into the end of the quarter and an increased supply of newer used cars". So here is what happened on the release of their earning report.
As a blogger should I have told you this was going to happen before it happened? The human brain is lazy. If you think you can make money in option trading you are going to have to teach yourself to be ahead of the curve. Now look at how the near to expiring ( tomorow ) Puts did as of 12:45 p.m. today? First the 80 series of Puts.
Basically a double. In was a pretty straight forward reaction. Here now is how the extra spicy ones traded.
Mark this date down in your calender book and revisit this scenario a year for now. I should be collecting an email list of all the viewers who want to be reminded of events like this but there are many things I should be doing. *** An observation on Friday April 12th, one day after. Look at this five day chart.
Can you notice the dip in Carmax on the morning prior to the release of the earnings report? Was that a hint that something no so good was about to happen?

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