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Walmart Again

On Monday I did a blog on buying this week's Call options on Walmart for a morning move. Today is now Thursday and there was a big sell off in the markets yesterday. Tesla sold off for example and here is what happened to it. Today it is slightly rebounding as are so many other stocks. Thursdays however as oftened mentioned in recent blogs are not a good time to be purchasing one day options on stocks that expire the next day. Times change. In less chaotic times that's not always case. In the last few years there would be known upcoming Friday morning events like the release farm payroll numbers or other economic readings that would move the needle on the markets going up or down on on a Friday morning. In those markets it paid to get into option positions before the closing on a Thursday to get out on the Friday morning bounces were caused by the release of these premarket reports. So how is any of this revelant to Walmart's trading today? Well, there was a whole bunch o...
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Caterpillar and Deere Having A Good Week.

First Caterpillar going into Friday August 16th, a five day chart.
Now Deere.
Imagine having options and catching one of these moves? Tesla and Boeing were also on fire this week. There was talk of unemployment numbers not meaning to much and talk of interest rate declines. Get in and get out when the times are good. The markets can change on a dime. I talked this week about Telsa Calls and said to get out prematurely and the same with Boeing Calls. But wait, there will always be more trading opportunities. That plus the markets did nothing on Friday after this monstrous run. There was no point in wasting your time watching your lists of favorite stocks after everything rallied so strongly on Monday to Thursday. Now the five day and one day chart on Deere.
Who would be buying Deere stock on Friday after it had a massive rally the previous day? I don't know. Now look at how these three series of Puts traded on Friday. The only reason I am showing them is to point out how option traders were smart enough to stay away from them. You would think that after such a big rally on the week more option players would have jumped in on the Thursday's close to purchase "near-to-the money" Puts, looking for a five or seven dollar selloff. Apparently not. Yet the stock did sputter on Friday's opening which would have presented an opportunity to squeak out a small but profitable Put trade.
Learning where and when to pick your battles is a big part option trading. ( The S&P500 index gained 3.9% this past week, marking its best week of the year, while the Nasdaq Composite rose 5.3% and the Dow Jones Industrial Average advanced 2.9%.) This was one of the best weeks this year to be playing the upside.

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