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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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Three Month Charts and Tesla

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).

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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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