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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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Things Are Happening Quickly With Trump Coming Into Power.

Look at this. Pfizer. It's five day chart. What is happening? Look also at Eli Lilly's five day chart.
Now look below at how Eli Lilly sold off again, this time on Monday morning. The news of what was happening was further decimated over the weekend.
Can you jump in now and play it for the upside? Perhaps but who would want to? Call options on it are so expensive now that this time it would have to rally way more than half of what it just lost so far today just break even by the end of the week. Who would want to take this risk?
Now a question. Why is the open interest posted above at zero now? Well traders last Friday looking for a rebound where busy purchasing the 745 series of Calls instead. Not this series. Now here is how the 715 series of Calls closed out the day. They ralled over $4.00 a contract since we first looked at them.
Here is now what it's five day chart looks like at the close on Monday.
Now consider Pfizer. Might it rebound a touch at this point in time? Well options with less than a week to go in the twenty five dollar price range are dangerous. Here is a look at how it's "in-the-money"$24.00 series of Calls options with ony four trading days to go are trading at the end of the day on a Monday. Will they pop enough on the opening tomorrow to get out with a 50% profit? "In-the-money" Call options in this price range sometimes offers this potential. Not many traders were jumping into them today. Friday, when these Calls expire is still a long ways away.
No such luck. The DJII is down on the openining 325 points.
Eli Lilly is also down just over $10.00.
To be continued.

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