Featured

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 ...

Looking At One Week Price Swings !

This is a good market for price swings. Look at Boeing last week.
Boeing was up $12.63 on the week.Then there is Eli Lilly. It was up $28.44 last week.
The strange part is falling NYSE stocks outnumbered rising ones, 3-to-2. It is stated that the May job growth seemed to rule out a "near-term" rate cut. Look at the stock McDonalds. It was down $2.68 on the week. What a wild chart.
At the start of the year it was running up nicely on the theme they were adding new restaurants in the growing suburbs of every city in North America. Most recently the theme is that people can't afford to eat there. When sentiment changes looking for a rebound is never an exacting science. Look at Ford. It was up two cents last week and it was announced that sales last month were up 7%. If they are up again next month the stock might start to get noticed.
Had you purchased the 12 series Calls on Wednesday that expired that Friday you would have done well. Look at Nio. It was the third most activity traded stock on the NYSE last week. Ford was the fifth most activity traded stock on the same exchange. Nio often makes the top five list. Last week it dropped $.56 cents. That's a big drop on a stock in this price range.
It could come back up this week. Now look at First Solar. Look at it's one day chart last Friday!
Imagine catching Friday's one day Call options? Now look at it's one week chart. The stock was down $4.42 on the week.
On the wilder side,the "Blink" $3.00 series of Calls that expire this Friday closed last Friday at $.17. Playing options on stocks in this price range is a real crap shoot. See my June 4th blog I wrote about Chargepoint).
Here is it's first option trade of the week.
A 1:45p.m. same day update. The Ford 12 series of Calls has doubled.
Eli Lilly is up $9.61.
First Solar is up $14.41.
All during a period of time when the DJIA is only up 8 points so far on this day! *** Look at how the Blink Calls went on to gain over 50% in one day.

Comments

Popular posts from this blog

A Fireside Chat - One Year Options and Thirty Day Options. Which is Better?

Trump Media Technology Options With Three Days To Go.

Living on Kraft Dinner?