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How To Avoid Time Value Traps With Last Week Options.

This blog is not going to be an exhausting study of this topic. I just want to show you a few charts found in recent blogs and comment on which ones seem to skirt the issue of "time-value-concerns' and which ones don't. 1) Avoid Thursday at the close Call options. In this case Thursday is the second last day of the above chart. If you guess the wrong direction on the close it's going to be game over on Friday when the options expire. Thursday at the close on options that expire the next day are the biggest time value traps you can buy into. If the stock moves in the wrong direction it's game over. 2) Ford on a Monday going into Tuesday. On this chart April 13th is a Monday and Tuesday is the 14th. Can you see Ford closing strong on the close of the 13th? It would make sense to get in on the stong closing because these Calls would still have four trading days to recover if Tuesdays opening was not all that spectacular. 3) This time it's Caterpillar and it...
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G.M. A Four Minute Read That Will Make You Smarter. Do You Have Four Minutes?

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.

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