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What does the word disconnect mean? As a verb it means "to sever or interrupt the connection of or between; detach". Option trading - one day options - is a disconnect from the world. What happens to slightly "out-of-the-money" Call options on Costco when the stock shoot up thirty dollars on the day? I will show you what happened on Friday to Costco Calls and the options on a few other stocks I frequently watch. What a disconnect from the real world. But before that a look at how the indexes traded. 1) Costco. It's five day chart and a look at how three of it's option series moved upwards in one day. You may not know how to read these printouts but try to read the highs and lows on these option pricings. One printout shows an "at-the-money" option which means you are buying a contract on the stock, good for one day only at a locked in price equal to (or very close to) what the stock is currently trading at. The other two contracts shown are ...
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Snowflake and Charts

What the heck do I know about Snowflake? Not much. I know it's symbol. I have Snowflake and First Solar Inc. next to each other on one of the screens I watch and all I know is that their options are volatile. Today is Wednesday Dec 11th.
.....
If the stock was worth $185.00 two days ago why is it only worth $171.00 today? Should I scurry around looking for recent news to help figure out why it is down? At ten a.m. this morning the stock is relatively flat. What does that tell me? It tells me that traders are reassessing the causes of the damage that was done. At the same time I am mystified by the recent spikes in Boeing, Tesla and Rivian. Yet than again there are plausable reasons why those stocks are going up. Rivian is getting money, Tesla has a million things happening.... Which brings me back to Snowflake and First Solar Inc. Their stories don't get quite the same amount of attention. Here is how the 172.50 Calls are trading at 10:05 a.m.
Times change.
It is now 10:33 a.m. and look at those same options.
Ten a.m. on Wednesday morning are good times to be looking for stuff like this. A 12:24 p.m. update.
Picking a time to get out is the difficult part. Now nine minutes later.
What ended up happening on the day? First the one day chart.
Now for this suprise.
There was lots of warning in the mid afternoon that things were starting to change. Wednesdays are great days in the week for action like this. ** How did First Solar trade?
It's five day chart is kind of a flip of a coin.
These Calls are actually pretty cheap given that they are "in-the-money". Here now is it's one day chart.
My thoughts as I have said before is that buying Calls on a Thursday morning that expire the next day is a bit of a trap. Time value quickly can work against you. Wednesday options do not seem to have this worry.

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What does the word disconnect mean? As a verb it means "to sever or interrupt the connection of or between; detach". Option trading - one day options - is a disconnect from the world. What happens to slightly "out-of-the-money" Call options on Costco when the stock shoot up thirty dollars on the day? I will show you what happened on Friday to Costco Calls and the options on a few other stocks I frequently watch. What a disconnect from the real world. But before that a look at how the indexes traded. 1) Costco. It's five day chart and a look at how three of it's option series moved upwards in one day. You may not know how to read these printouts but try to read the highs and lows on these option pricings. One printout shows an "at-the-money" option which means you are buying a contract on the stock, good for one day only at a locked in price equal to (or very close to) what the stock is currently trading at. The other two contracts shown are ...
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