CAT Puts

Look at these two, three year charts. One company is flirting with new highs and one company is flirting with new lows. Netflix has aproximately 269.6 MILLION paid subcribers and that number is expected to reach 282 MILLION subscribers by the end of this year. Roku has aproximately 81 Million paid subcribers with aproximately 61 MILLION of those subcribers in the U.S. People talk. If you listen to the radio you will often hear chatter about the best new Netflix series of the week. The entertainment business is a huge business and growing. Tracking the growth rates of new subsribers has become almost a science in itself. India has a population four times larger than United States. In theory, growth is unlimited for both of these companies. Now look at this chart. It's a random chart of how Roku dropped almost ten dollars in the first 25 days of April. Now this chart. What's my point? Well keep these two charts in mind when I now show you how Roku and Netflix traded in the ...

Is the world of option trading tidy, simple, predictable and coherent? No. Look at these three month charts. The first three are ugly followed by two that are not. What's with Moderna? The U.S. government is talking to Moderna and Pfizer about a vaccine development program for bird flu. What's with First Solar? Rumors of solar power stocks being the beneficiary of A.I.. So the question now is how does one navigate in the world of option trading when the pace of change seems to be accelerating? It's difficult. Our minds can be blind to the obvious, and we are also blind to our blindness. In this current market state of rapid change one way of playing options might be to try and catch the daily price swings in Tesla. Here is it's most recent five day chart. Catching a ten dollar bounce on a Tuesday with Call options on Tesla that expire on Friday or a five dollar bounce on Friday that expire that day can put a smile on your face. (Tesla is not always this jumpy).

Here what the DJI is doing at 10:00 a.m. It's up a touch on the opening. Yet Boeing is down. What's that all about?. Here is what Boeing is doing. Would you jump into Calls now to try and play the upside? Here now is the cost of an $187.50 Call that expires on Friday. It's Wednesday and the week is only half over. What might the short term options that expire on Boeing on Friday do? The minute to minute chart looks like the stock might be turning upwards. Boeing can sometimes jump five dollars in one day, not usually however on days when it moves down three dollars in the first half hour of trading so this isn't the brightest of trades to be making. It's a trade looking for a slight rebound, maybe to get into and out of by lunchtime. So what to do? Let's do the smallest of trades. Let's just purchase just one slightly "out-of-the-money" Call option as an experiment. Here is what that would look like. One Call option purchase at 9:37 a.m. for $1...

Here is a look at Deere towards the end of the afternoon after a premarket earnings report was released. It got beat up pretty bad. What we are now looking at is a printout of one Deere option series which will be expiring the next day. This snapshot was taken at 3:37 p.m.. Would now be a good time to buy into these 395 Calls and try to play tomorrow's potential upside? The stock is rebounding from a significant dip. Lets look at how these options traded the next day. Can you see they hit a high of $4.65 sometime during the following day? I did two very small trades on the Friday morning bounce back. I just wanted to cover my commissions and make a touch. Remember, Deere options are extremely difficult to play and with only hours to go before this series of Call options expire its not bad to take a profit whenever one materializes. .................. My times in were 10:14 to 10:31 a.m. and 10:59 to 11.09 a.m. I missed the elusive high of $4.65 which happened after I got out. ...

Let's look at this stock as a trading vehicle. Hesai is a company that helps to make driving safer. I am not saying that I endorse this company or know a heck of a lot about it. All I am saying is that I am intrigued that it has options trading on it. Option traders are just discovering it. Just look at the light volumes of trading on it. What does that mean? Well found below are four readouts of how it's "five dollar series" of Calls are trading which will catch you by suprise. What I want to show you is how light the trading volumes are. It's a small company. Small but big enough to get itself listed on a reputable exchange and big enough to introduce the concept of having Calls and Put Options trade on it. All that takes planning. Here are some of it's current realities. It's Chief officer is stepping down and the board is changing. That sets off warning flags. So does this news . Here is it's year to date chart. Eight dollars to four dollars and...

Back to an old friend. This blog is about why trading stock options on the stock "Ford Motors" can suprise. It's also about trading options I call "penny like options". In this instance I am trading options priced at twelve cents. For first time readers that really means $12.00. Now, a one day and five day chart on Ford. Can you see how volatile the stock is as of late? Now the five day. Now a look at it's trading in the morning today up until 11:30 a.m.. Now here is my trading experience on the day. 20 contracts in at 10:05 a.m. at $12.00 each and out at 10:38 a.m. for $18.00 each. That's six dollars profit a contract. It all happened very quickly. Are you able to look at the chart above and see how the chart dipped during that period of time? If you don't play options and want to don't start by making trades like this. Well then again some traders only only make trades like this. It's not uncommon to see a $300.00 trade quicky go to $3...