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A Look At Walmart Options Again

On Monday I did a blog on buying this week's Call options on Walmart and at the time of writing it I was looking for a small morning upward move which did then happen. Today is now Thursday and there was a big sell off in the markets yesterday. Tesla for example sold off and here is a five day chart showing what happened to it. Today it is slightly rebounding as are most other stocks.(That often happens on the day after the DJIA drops 620 points! Traders jump in looking for bargains). Thursdays however as oftened mentioned are not the best of times to be buying into "one-day-options" on stocks that expire the very next day. In less chaotic times that would not always have been the case. Things like the release of farm payroll reports would often come out just before the markets opened on Fridays and they would help move the needle on the indexes going up or down. Getting into option positions on a Thursday with the intentions of getting out in the premarkets or just after...
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Caterpillar - Going Back to This Website's Roots.

Look at Caterpillar's five day chart. It has nice spikes.
Now it's one day chart.
Now check for news. Well its not brand new but it is news.
Nothing is gauranteed from looking at the five day chart. It closed strong. It might rally on the opening. No it didn't.!
Here is how it is trading at 11:00 a.m. the following day. Down like $2.65 in morning trading.
Now Wednesday morning.Down again.
There was no news or no reason for this drop. It is a Wednesday morning. Look at the lack of interest in playing these Calls.
Wednesday's are the one day of the week for market reversals. We are still a tad to far away to introduce the concept of how the stock will react to the release of quarterly earning reports. That doesn't happen until August 6th. The low volume of trading is not a particularly attractive feature to option traders. These 325 Calls are $1.29 cents "out-of-the-money". Any kind of a two or three dollar rebound would have a positive effect on these Calls. Let's look at what happens next.
The Calls doubled in price. Blogs like this talking about Wednesday reversals and playing one week options are a common theme to this website. Here now are the same Calls on Thursday morning.Caterpillar can suprise.
More action happened on Friday.
I caught a slice of this action.
I gone in to early and had to endure some pain. I should have waited until Wednesday to get in.

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