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The Guts To Play A Friday Morning Bounce.

This stock seems to jump up every morning. It's Super Micro Computers and back in March there was a big stink when their former co-founder was arrested for illegally trying to divert $2.5 billion worth of AI servers with advanced chips to China. Might it bounce upwards on the opening tomorrow? These Calls which expire tomorrow closed at the low of the day. Now Big Bear Ai. Could these Calls double in price on the opening tomorrow? It closed strong on the day today. Now my friend Ford, which faltered on the close today. Could it rebound back up smartly tomorrow? Traders don't like this chart and Call option trading today on it was light. Now Hertz however this time we are looking at Call options one week out. The stock jumped today big time. Here is some recent news. Look at this unusual chart. It's the kind of chart which can jump upwards on the opening. Now Disney and a series of Calls that jumped 250% on the day. Is there room to jump some more tomorrow? This is a ...
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Roku And It's 2nd Quarter Earning Report

Let's start with the time period of Thursday morning with an earning's report coming out after the closing bell. Look at how crazy expensive these three series of Call options are. They are the Roku "out-of-the-money" Call options that expire tomorrow. The volume in them is not all that crazy but if I owned the stock I would be tempted to sell the Calls against my position and hope they would expire worthless. Tomorrow is Friday August 2nd.
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Why pay so much? Why pay $4.05 for a Call with a striking price of "58" with one trading day to go in the contract? The stock would have to jump four dollars just to get your money back? Talk about stupid? Yet then again Netflix, a company also in a similiar space sometimes moves like ten dollars in one day. Here now is a look at what happened by showing tomorrow's five day chart.
Down $2.19 on the day to $53.14 with the DJIA down over 600 points.
Say goodbye to those Calls if you ever bought in. Now let's look at it's year-to-date chart.
Can you see how it dropped about $35.00 quickly on the release of it's first quarter's earnings? That's part of the reason why these Calls were so expensive. On good news it could have really popped. So what were it's second quarter earnings actually like?
It's still reporting losing money per share however their guidance is starting to look more promising. Having the markets drop over 600 points on the day (it was down even more than at one point during the day) really squashed any upside potential. The game never ends. Here now is how next weeks 53, 54 and 55 series of Calls are trading.
Pick you battle. How did things turn out four days later in a crummy market? Not good. Look at these same options. People however are now waking up to the fact that the quarterly earnings report was not all that bad. Trading options is never a walk in the park. There is still time for these Calls to suprise.
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