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Walmart Again

On Monday I did a blog on buying this week's Call options on Walmart. Today is now Thursday and there was a big crash in the markets yesterday. For example, Tesla had an insane selloff. Here is what happened to it. Today it is slightly rebounding as are so many other stocks. Thursdays however as oftened mentioned are not a good time to be purchasing one day options on stocks that expire the next day. So how is any of this revelant to Walmart's trading today? Well, there was a whole bunch other stocks that got knocked yesterday that might now rebound back up again together. Look at the chart below of Walmart and see how it was off a couple of dollars yesterday. Could you buy in now and get out later in the day? Fantasy thinking, one might say. Could it sneak up even one dollar? Now this. The stock mid morning is now merely trading sideways. Now look at this, the 93 series of Calls. (On Monday we were looking at the 94 series of Calls). At 10:22 a.m. the stock is up six cents...
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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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