Featured

Trump Media Technology Options With Three Days To Go.

On Tuesday just after 3:00 p.m the Trump Media Technology Options had stop traded again. What is the next 24 hours going to bring? Who knows. So many option traders follow this stock and most are afraid to buy either Call or Put Options on it because their premiums are so expensive. If Trumph wins the stock should soar and if he loses the stock will tank. The option premiums are priced expensively in both directions. Here now is how both the Calls and Puts traded on the opening today. First the Calls six minutes into the opening. Now the Puts. Now a look at how these options played the day. With a "stop trading" situation the option session ended a little bit early as evidenced in these following readings. Notice also how low the open interest number is in these Puts. Option traders for the most part opted to stay away from this situation. Now this. Trump wins. Here is how the 38 series of Calls traded just after the opening at 10:11 a.m.. The stock is up however the
Post a Comment

Looking for Monday Morning Rebounds. Stocks Mentioned. Deere, Tesla, Boeing and Ford

Deere did nothing last week and it moved up Monday morning.
Here is how two series of Calls reacted in the first 45 minutes of trading. First the Calls that expire in four days, the $400.00 series of calls.
Now the $402.50 Calls.
Gains of 47% and 50% respectedly. What about Tesla? The reverse happened. Here is its five day chart and it dropped $8.36 on the opening before rebounding slightly. .
Here is what the Tesla 250 Puts that expire this Friday did. They closed last Friday at $8.80 and went as high as $14.90 on the opening, a gain of 69%.
What is my point? Well both stocks dropped over ten dollars a share last week and both stocks did a rebalancing act this morning. Let me add more context. Its 10:45 a.m. and here is Boeing's five day chart. I have talked about how Boing sometimes jumps on Monday mornings.
Boeing is up just over $1.00 in the first 45 minutes of trading and is hovering at a price pretty much in line with where it was trading at last week. For this reason I would not of had placed it on the list of stocks to jump on a Monday morning. Yet another candidate for a Monday morning rebound this morning was Ford. Ford last week was the NYSE most actively traded stock by share volumes down $.85 cents on the week to $10.02 on a poor earnings report. That's a big drop. Look at its five day chart, this time at the 11:00 a.m.mark on Monday morning.
The reasons for looking at a rebound of some sort on this stock on a Monday morning are not as compelling as the reasons for looking for a rebound in Deere or Telsa. Yet the jump in it's price neutralizes to some degree some of the damage done to this stocks decline last week. That's what Monday mornings are sometimes know to do. The Ford options on it's one week 10 series of Call options also doubled on the opening.
Is all of this called playing hunches? I would like to think that there is more to it than that.

Comments

Post a Comment

Popular posts from this blog

A Fireside Chat - One Year Options and Thirty Day Options. Which is Better?

Image
Some say to think small, not big. Trying to play Disney options is thinking big. It is a stock slighty out of favor. If we start with it's a three year chart, we will see it is down by about 50% over that period of time. Now it's one year chart. If the stock can break 110 in early 2024 the sky is the limit. It does have a lot of moving parts so anything could happen. Look at these Calls options one year out. One year in options buys a lot of time.They look reasonable. If the stock ever inched up to the $105.00 price level in the three or four months these options would jump up in price by about 50%. Even more if they had really good news. Yet it's the "what-if" aspect of the equation that castes such a trade in doubt. "What if" stories just don't cut it. There are to many variables in play. Then again, why are we even thinking of long-term Call options after a December's rally? Let's switch gears. If consumers are out spending for X-mas
Read more

Deere Lays Off /Tesla / Eli Lilly/ Home Depot/ Nio

Image
It was announced today, a Tuesday that Deere is going to lay off some of it's workers. Perhaps that news was leaked out last Friday and that's why it could have sold off last Friday afternoon. The stock basically has done nothing over the last three years but some traders love it for it's thirty day swings. I have talked about Deere before. The markets were accepting of this news. In other news Tesla Call option traders are rejoicing. Image getting in two trading sessions ago at $196.00 to watching it shot up to over $230.00? This was (it's up in the premarkets again) the Telsa trading opportunity of the year! Then there is upside movement in Eli Lilly. But then there is this background news. Now this. Talk of a hurricane. Will Home Depot go up? Then there is Nio. It's shares trade huge volumes and the stock has a wide following. Might it trade back up to $6.00? It's down almost half price on the year. One of the problems in trying to anticipate what m
Read more

I Wonder How The Back Office Is Going To Handle My Complaint

Image
The blog is about dealing with the back office of the brokerage company I trade with. This story happened today. Todays trading session has closed and I just made a telephone call to them just after the market closed to voice a complaint over how I feel I got short changed. Here are my background notes. 1) It involves trading the 370 Boeing Puts that expire at the end of this week. I bought in at 10:08:34 a.m. and sold out at 2:59:38 p.m. I was stuck in this position longer than I had hoped. I got lucky and did O.K., however that is not the point. 2) Here are my two "in-and-out" tickets. Two contracts in at 10:08 a.m. at $163.00 each and two contracts out then "at-market" for $365.00 each at 2:59.38 p.m. Now here is Boeing's one day chart. It dropped precipitously from 2:59:00 p.m.to 3:00:p.m. I just happened to be watching it at the exact time of the crash. That's when news came out that the "FAA opens Now a Boeing Inquiry over 787 inspections"
Read more