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A Random Walk In The Park On A Monday Morning. A Caution. Monday Mornings Are Often Not An Option Players Best Friend

Let's start with this. It's now 10:26 a.m. A bet on Caterpillar rebounding by the end of the week. There are no takers. Why have to watch the screen for the next four days in agony waiting for a rebound which if happens is just a "break even trade"? But Wait. I made a mistake. The market is actually now down 668 points. What else can we look at? Interactive Brokers. These kind of stocks always do poorly on days with the threat of margin calls. Yet there is something interesting about the printout I am about to show. It is that these options are "one-month-out" Calls. These longer term options trade differently than short term options. (these options trade in one month intervals). If the stock we are following stops it's freefall the value of the options will nudge up ten, fifteen or twenty percent. A seven dollar option Call might creep back up to $8.00 or $9.00 at which time it could be sold. In contrast with a five day option a slight reversal in ...
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Ford And A Crazy Week.

Ford appears to be working on it's excess inventory problem. The stock surged this week. It helped the Barron's last weekend came out with an article entitled "Ford Is About To Make a Comeback. Hop Along For the Ride".
Now look at how one of it's option series traded on the day.
This move was a once in a year event. Many people do not like the stock Ford because historically it has being stuck in the mud for a long time. That plus stocks in this price range can be boring to watch. To be continued.

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