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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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Boeing On A Dip

First it's five day chart.
Stocks after a dip like this sometimes take time to recover. Buy nexts weeks Calls just slightly "out-of-the-money" and sell this week's Calls against them. Here are the two series we are talking about.
Now the series with the shorter expiracy date.
Buy the longer term Calls and sell the shorter term Calls and hope the shorter term Calls expire worthless. What caused Boeing to sell off so quickly? Airports were crowded over the long weekend that we just had. People where flying in record numbers. Now read this.
So what to think? Boeing, partially because of it's size is easy to criticize. Yet a few cleverly worded paragraghs should not be enough to set off alarm bells. One takeaway is that there is a risk involved in purchasing Boeing Call at 3:59 p.m. on a Friday afternoon, especially before a long weekend. This stock has struggled as of late. Now at look at the two options series we just talked about after the close today, a Thursday. On a percentage basis this weeks Call lost more than next weeks Calls..
After tomorrows closing (a Friday) I will tell you what all this means. Boeing sold off on Friday (
) and the 165 Calls that I suggested should be sold as part of a spread ended up expiring worthless Here they are.
Here now also is the closing reading on next weeks series of 165 Calls and Boeings five day chart on the week.
Doing this spread at this point in time kind of backfired because Boeing dipped again today. Yes you do get to keep the $157.00 you collected on the expired Call contract you sold however the offsetting 165 Call one would have purchased to create this spread is also down now. A bounce on Monday or Tuesday is now needed to save "next-weeks" Call option. Now Monday at 11:30 a.m.
At this point in time you are in a break even situation if you did the spread I talked about. It's not exactly a pleasant ride. Tuesday had news. Boeing always has news.
Tuesday. Did you get out of the 165 Calls yesterday to recoup last weeks investment? The 160 Calls are the ones that could now gain from a short term rally.
To be continued.

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