Posts

Showing posts from December, 2024

Featured

Why The First Two Or Three Minutes Of Trading After The Markets Drop Over 800 Points Can Be So Important To Option Traders.

Option traders already know this. The market sometimes pops on the opening after a large one day drop. Yesterday, a Monday it closed down over 800 points. The problem sometimes is that if you put in a ticket in the premarkets to get in on the opening, a "buy at market" ticket you risk getting filled at a ridiculously high price if the price of the stock opens with a gap to the upside. Let's look at how one series of Home Depot Call options traded on the opening. Today is a Tuesday. The low of the day on these Call options happened on the opening with a price of $6.46. The chart doesn't show this low priced sale happening. Let me try and explain how this happened. Look at this. Here is where it can get complicated. The chart above shows a spike at 9:00 a.m. Yet the markets don't open until 9:30 a.m. You can't trade options in the premarkets. If you submit a "buy-at-market" or "sell-at-market" ticket it sits on the books and gets an opening...
Post a Comment
Read more

G.M. A Four Minute Read That Will Make You Smarter. Do You Have Four Minutes?

Image
Well actually it's a six minute read if you also want to read about an interesting dangerous Ford Call trade. Read this. I talks about the big picture. Look a how much money is being tossed around. Now ford. First it's five day cart. What happened? Well good news just came out that is being interpreted as being bad news. Now a look at the Call options that expire tommorrow Dec. 6th and next Friday Dec 13th. It will be interesting to see how this situation turns out.**Ford dropped in the last minute of the trading session with over 5 million shares getting dumped in the last minute of trading. Here is how the 10.5 series of Calls with one trading day left in them closed. Tomorrow will be interesting.
Post a Comment
Read more

Vinfast Hits The Lottery! And AMC. "Action On One Week Five Dollar Options"

Image
This post is easy to write. It's also something skeptics of option trading should read. Look at how all on the options exploded on this one. Here is why. Both of these articles were from Nov26th and 27th. Why the time delay in having this stock pop is something I don't understand. Back on Sept 5th and Oct 27th I did I blogs on this stock. Go back and read them. Both times I ended these blogs by saying "Do your homework on this one". Read my blogs about playing options on $5.00 stocks. Here now is how Vinfast closed the day. Now look at how the five series of Calls closed on December 5th (with only one trading day of life left in them). Profits on options on five dollar stocks come and go quickly. Here is a quick look at another company with $5.00 options that expire tommorow which had a few hours of glory in the last two hours of trading today. AMC Entertainment. *** The AMC story is complicated and the stock price is manipulated. These three snippents tell par...
Post a Comment
Read more