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Walmart Again

On Monday I did a blog on buying this week's Call options on Walmart for a morning move. Today is now Thursday and there was a big sell off in the markets yesterday. Tesla sold off for example and here is what happened to it. Today it is slightly rebounding as are so many other stocks. Thursdays however as oftened mentioned in recent blogs are not a good time to be purchasing one day options on stocks that expire the next day. Times change. In less chaotic times that's not always case. In the last few years there would be known upcoming Friday morning events like the release farm payroll numbers or other economic readings that would move the needle on the markets going up or down on on a Friday morning. In those markets it paid to get into option positions before the closing on a Thursday to get out on the Friday morning bounces were caused by the release of these premarket reports. So how is any of this revelant to Walmart's trading today? Well, there was a whole bunch o...
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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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