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"Tony The Tiger" - A Food Stock

The mood of Wall Street is now changing as the reality of tariffs is starting to kick in. Two weeks ago not so much so. Kelloggs had "so-so" earnings come out a few weeks ago and the stock exploded upwards. Note the very last line above mentions the effects of tariffs are not taken into consideration. So many stocks with "so-so" earning reports have jumped in price based on the "lets make America great again" slogan. Deere stock is shooting to the moon as I keep writing about in spite of declining sales in the last quarter. The sentiment seems to be that they are immune to tariffs. On paper they might be. Read this. Americans are struggling to buy gas, eggs and insurance. Total housing starts in the U.S.in 2024 were down 3.9%. Walmart, the recent darling stock in the last four weeks for Call option players woke up this morning with an earnings report which was healthy but with came with some caveats. Here is what happened. Perhaps the U.S. is starting ...
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Options On Stocks In The Four and Five Dollar Range Can Be Dangerous

Summer holidays are now over for most people and many of us are now back online figuring out how we survived the summer. Look at these charts. It's Lucid, an electric car making company and it's stock is now near the five dollar price range. Options on stocks in this price range are difficult to play. I made that comment in a posting last week on the stock A.M.C. Entertainment and watched it bounce on a Monday morning to then only give up it's gain. Why not just buy the stock if you like? That makes more sense. That is one of the reasons that the volume in these Calls is so light. Now look at Lucid's one month, five day and three year charts.
Now against this backdrop consider this. "In-the-money" Call options with one month to go. What one would be hoping for is some kind of a good news annoucement.
The early October time period is afterall is not that far away.
These $.60 cent Calls (or $6.00 dollar a contract) could go to $1.20 (or $12.00 a contract) on any kind of a pop. Here they are again on the opening on September 4th.
Notice the "ask" has jumped up to a crazy number. When you buy options on thinly traded series you almost have to buy in on days it is trading down. Lets also now look at the 3.5 series of Calls that expire in three days.
This seems to now be where the action is with a much more realistic bid and ask.
To be continued. A September 4th update (Wednesday at the close) Faraday Future update. I have talked about this stock before.Look at how it's $5.00 Calls that expire this Friday traded. Up 1,900 % on the day. They closed Tuesday the day before at .04 cents.
Sometimes five dollar options will suprise. A September 11th update.

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