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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 ...
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A Look At Boeing Calls With Three Days To Go

If your sitting in a Boeing Call on a Wednesday that expires on Friday hoping to day trade it for a profit I would ask you why? It's an expensive gig to be in with the time value working against you. Case in point is today's action (Wednesday October 14th). Look at it's one day chart.
I see a bit of a jump between 10:30 a.m. and 11:30 a.m. but that's about it. Now a look at the 165 Calls.
The timing would have to be impeccable to catch it. That's why I don't like Thursday options with two more days to to go. Yet buying in on Thursday around 3:59:47 might be one way to go, looking for a following opening bell swing. Now look at how these $172.50 Calls moved upwards on a Thursday morning bounce.
Also look at the how the 165 Calls also moved up however not as much on a percentage basis.
As with my advise in my last blog on Tesla I would get out of a situation like this. Hanging onto options on Thursday that expire on Friday is not my favorite game. Nor is buying options on Thursday at the close looking for a market change on the following morning. I will come back to this blog later to show you how these options finished out the week. *** Look at how Boeing ended up trading on the day.
Now this.
******** Now to address my comment about hanging onto options on a Thursday. Look at how the NASDAQ was up 401 points on the day. This was not your typical day.*** Here is how the 165 Calls closed out the week.

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Living on Kraft Dinner?

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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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