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A Look At Walmart Options Again

On Monday I did a blog on buying this week's Call options on Walmart and at the time of writing it I was looking for a small morning move upwards. Today is now Thursday and there was a big sell off in the markets yesterday. For example Tesla sold off and here is what happened to it. Today it is slightly rebounding as are many other stocks.(That often happens on days after the DJIA drops 620 points). Thursdays however as oftened mentioned are not the best of times to be buying into "one-day-options" on stocks that expire the very next day. In less chaotic times that would not always have been the case. Things like the release of farm payroll reports would often come out just before the markets opened on Fridays and they would help move the needle on the indexes going up or down. Getting into option positions on a Thursday with the intentions of getting out in the premarkets or just after the Friday morning opening morning bell was ofen a profitable trade to make. Now, tho...
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How The Rules Of Speculating Have Changed Because We Have A Bully Running U.S. and Rivian On News

A bully makes the rules and that's the problem. The "markets" can now turn on a dime whenever Trump, the bully now decides to make an utterance. A fat man playing golf at "Mar-a-Lago" surrounded by FBI agents in the bushes. He now has carved out his ninch as a "one-man-show". His cronies are lined up to get rich. We are all stuck. The markets will now start to go up and down on every utterance he makes. As a trader let me give you one example of his powers. One day on a Friday afternoon around 2:30 p.m. when Trump was in power the first time as the president he made a comment that spooked the markets. The markets dropped like 600 points in a matter of minutes. I was checking my cell phone and I watched this event unfold. I was sitting on a handful of Puts in about four different stocks and I only had like 30 minutes to get out. Up until that moment in time I was getting smoked on all my positions. Suddenly I was rich as all of these holdings jumped up in value like 400% or 500%. As fast as my brain could operate and my fingers could move I placed sell "at market" orders on each of my positions and got out. It's lucky I made the "at market" decision because the markets then went on to retrace most of it's downward spike before the closing bell. Going in "at market" saved my bacon. Guess what? This is the new reality we all once again will find ourselves to be in. Get ready for it. It's not going to be a fun ride.Trump and his buddies will know in advance as to when the marijuana stocks will pop again. Remenber, Trump needs money to pay his legal bills. They will pop on on the day of its decriminalization. Prepare for that event.
Is now the time to be looking at long term Calls? I would say yes if we are looking at stocks in the ten dollar range but no if we are looking at stocks in the $300-$450.00 dollar range. Some of the higher priced stocks could get knocked off their horses. Now Rivian, it jumped this morning on good news.
Can you now try and profit from this weeks options on them? Here is one series to look at. It is exactly midweek, a time when option series are known to sometimes turn around. In this case they have subsided from their morning highs. Yet the chart pattern now looks ugly making it something like a 50/50 decision. Why take the risk? Perhaps wait a few days and see if it comes off in price a bit in which case the one month out Call options might look more interesting. A second wave of interest could then come into this stock.
Now this. Back on June 26th, 2024 which was once again a Wednesday Rivian was in the exact situation with very much the same news. V.W was giving them money. I ended up playing one month Calls options on it and I ended up eventually just getting back my money. It was the very same chart formation back then as it is now with the stock dipping at noon after a good news a morning rally. The resemblance is uncanny. Here is a look at it's June 26th 2024 chart.
Read that June 26th blog to get a better feel for the Rivian story might unfold this time around.
As a general rule, stay away from trading short term options on stocks in the $10.00 and $15.00 dollar stocks range after a good news report has come out. If you do it's better to be looking at the one month out series of Calls. Here is how Rivian closed out the week.
You would think that with the support V.W. is giving them there would be more support. The January 17th 2024 Calls for at $1.21 look interesting. Anyone sitting on the fence about purchasing one of their vehicles will now have the V.W. endorment as a bit of an insurance policy.That's good for business.

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