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Netflix With One Day To Go. Also Boeing, Tesla And Caterpillar.

Here is a one day chart showing how Neflix traded on December 31st 2025. It sold off on the opening and then had a decent rebound followed by a flat to down closing. January 1st was a holiday and options on it expire on Friday, January 2nd. Now look at a chart of how the 93 series of Calls that expire tomorrow (January 2nd) traded on the previous trading day December 31st. At one point in the day they rallied only then to sell off again. Here now is the same chart from a different provider. Let's put a bold spin on things. Let's move up the price point by $1.00 to the 94 dollar price level and put a new spin on things. Will the 94 series of Calls with one day to go jump on the opening January 2nd which is tomorrow? Why the 94 series and not the 93 series? Well it's hoping for a rebound from three prior days of falling markets. Here they are. Both of the series we are showing are slightly "out-of-the money" one day Calls. Both need a sizeable morning bounce to p...
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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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