Featured

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...
Post a Comment

Five Day Options on Tesla

First a Monday morning August 12th premarket look at Tesla. First a thirty day chart.
Tesla has a lot of moving parts which means that no matter how much you study the dynamics of how it operates you never can predict which way it is going to move next. Here now is a look at this coming Friday's 200 series of Calls and Puts. These numbers show closing Call prices of the closing markets last Friday.
Do they look kind of expensive? It looks like you need a price swing of at least five dollars over the next five days to make any money trading them. What a daunting challenge. Let's move forward. Let's look at the days closing numbers on these two series of Calls.
Notice how the open interest number in the Calls is unchanged. These numbers will only be updated before the following mornings openining. Now the Puts. There are always more Call than Puts outstanding.
Now lets jump into the action on Tuesday morning at 11:49 a.m. . Tesla is jumping up.
Now here it is now at the end of the day.
Now think back to the start of the week when the 200 seres of Calls where trading at $560.00. Day traders, take your money and run.That's what daytrading is all about. It helped that Musk had an interview with Trump which was widely watched. The two seemed to be able to work together. For Tesla that's a good thing. Yes you can sometimes buy Telsa Calls on a Monday morning. To be continued. *** The next day which is Wednesday July 14th. Here is how Tesla in trading in the first 30 minutes of trading. Sitting in Telsa calls for to long is never a good idea.
What's next? Thursday. Look at its chart and the 200 series of Calls we started with. Not every week goes this well.
Now Friday's end of week readings.
Tesla was up $16.12 on the week.

Comments

Post a Comment

Popular posts from this blog

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

Image
Some say to think small, not big. Trying to play Disney options is thinking big. It is a stock slighty out of favor. If we start with it's a three year chart, we will see it is down by about 50% over that period of time. Now it's one year chart. If the stock can break 110 in early 2024 the sky is the limit. It does have a lot of moving parts so anything could happen. Look at these Calls options one year out. One year in options buys a lot of time.They look reasonable. If the stock ever inched up to the $105.00 price level in the three or four months these options would jump up in price by about 50%. Even more if they had really good news. Yet it's the "what-if" aspect of the equation that castes such a trade in doubt. "What if" stories just don't cut it. There are to many variables in play. Then again, why are we even thinking of long-term Call options after a December's rally? Let's switch gears. If consumers are out spending for X-mas...
Read more

Trump Media Technology Options With Three Days To Go.

Image
On Tuesday just after 3:00 p.m the Trump Media Technology Options had stop traded again. What is the next 24 hours going to bring? Who knows. So many option traders follow this stock and most are afraid to buy either Call or Put Options on it because their premiums are so expensive. If Trumph wins the stock should soar and if he loses the stock will tank. The option premiums are priced expensively in both directions. Here now is how both the Calls and Puts traded on the opening today. First the Calls six minutes into the opening. Now the Puts. Now a look at how these options played the day. With a "stop trading" situation the option session ended a little bit early as evidenced in these following readings. Notice also how low the open interest number is in these Puts. Option traders for the most part opted to stay away from this situation. Now this. Trump wins. Here is how the 38 series of Calls traded just after the opening at 10:11 a.m.. The stock is up however the...
Read more

Another Earnings Report - "Roku" - Thursdays and Friday Trading.

Image
Please read this Roku "earnings report" blog. Roku was down fifteen dollars in the first hour of trading today after the release of it's third quarter earnings report. Here is a 10:52 a.m. look at one series of Puts that doubled in price on the opening as a result of this sell off. In my last blog on Caterpillar I talked about points of inflection where stocks rebound after bad news. This time an inflection point may not be in the cards. Caterpillars earning were just shy of expections but nothing had really changed. The world still needs their products and they are still a dominant player in their industry. Roku is a different animal. Their subscribers are a fickle bunch. Companies like Roku and Netflix go up and down all the time. Roku now is just back to a level at which it was trading at earlier this year. I don't know how to interpret their financial statements. Things still look pretty good for them to me. Once again here is a look at the increase in the value...
Read more