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Showing posts from November, 2024

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Finding A Trade To Make On Thursdays. "Walmart"

I don't like Thursday afternoons in short term option trading. A lot of things seem to happen on Thursdays like government reports coming out. I don't buy in the final seconds of trading, Call options on Boeing, Caterpillar or Eli Lilly or hoping for a Friday morning bounce. The hope today is to do find something good to trade and walk away by early afternoon. Welcome to Walmart. Options on Walmart are tight. Other stocks like McDonalds have options which trade sloppily. Let me show you what I mean by this. Good luck trying to get a fair fill if you're buying or selling. Now the Walmart side of the story on how options trade on it. Can you see the tighter bid and ask and the higher volume of trading? Step back for a second and consider this. The stock is only up $.26 cents in the first 45 minutes of trading. What does that tell us? It's waiting to decide which way it wants to go. Now this. These Call options went on to move up to $1.71 just before noon. There was the...
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Options on Five Dollar Stocks Can Surprise! HSAI

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I have talked about this stock before (Hesai Group) and this morning it suprised again. Back on May 17th I did a blog on it called "A New Company To Learn About". Now lets look at it's current five day chart leading up to this morning. Look at yesterdays volume pour into it. Now this mornings early action. Another spike in volume on the opening. What's all the excitement about this morning? If you don't know this company here is what they do. Now back to my May 17th blog. Where were the five series of Calls on it trading back then which expire in January 2025? Here is how this same series of Calls is trading now. No one had any interest in them. The bid and ask where crazy far apart. The option makers were burdened by making option markets for a stock with not much of an option trading history. The worry aferall is that a stock like this could double or tank overnight on news. Any stock could but more often it happens in this price range. Why would I say t...
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Boeing. Last Week Was Ugly. It's Getting To Look Pretty Cheap

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Look at this chart. Strikes and doors not working properly but it's amazing their planes fly millions of passengers around safely ever year. Now a look at it's one week chart. Good luck trying to play the Calls on it last week as it dropped $11.49 on the week. It wasn't really a Trump related happening. It was just a bad week. I have mentioned in previous blogs how some people buy Calls on Boeing on or near the closing on Friday to then sell on Monday morning openings. Now this. Boeings one day trading chart on a Monday November 18th. Now the trading in the 140 series of Calls. Boeing is up again the following morning (a Tuesday) with the DJIA down over 300 points. Remember the stock lost $11.49 last week. Do you think it will now continue to go up? Now Friday Nov 22nd. This is the day these options expire and this is shortly before noon. Now would at this be time in the morning be a good time to be getting out? Now here is how they closed out the week.
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Another Earnings Report - "Roku" - Thursdays and Friday Trading.

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Please read this Roku "earnings report" blog. Roku was down fifteen dollars in the first hour of trading today after the release of it's third quarter earnings report. Here is a 10:52 a.m. look at one series of Puts that doubled in price on the opening as a result of this sell off. In my last blog on Caterpillar I talked about points of inflection where stocks rebound after bad news. This time an inflection point may not be in the cards. Caterpillars earning were just shy of expections but nothing had really changed. The world still needs their products and they are still a dominant player in their industry. Roku is a different animal. Their subscribers are a fickle bunch. Companies like Roku and Netflix go up and down all the time. Roku now is just back to a level at which it was trading at earlier this year. I don't know how to interpret their financial statements. Things still look pretty good for them to me. Once again here is a look at the increase in the value...
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