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"Tony The Tiger" - A Food Stock

The mood of Wall Street is now changing as the reality of tariffs is starting to kick in. Two weeks ago not so much so. Kelloggs had "so-so" earnings come out a few weeks ago and the stock exploded upwards. Note the very last line above mentions the effects of tariffs are not taken into consideration. So many stocks with "so-so" earning reports have jumped in price based on the "lets make America great again" slogan. Deere stock is shooting to the moon as I keep writing about in spite of declining sales in the last quarter. The sentiment seems to be that they are immune to tariffs. On paper they might be. Read this. Americans are struggling to buy gas, eggs and insurance. Total housing starts in the U.S.in 2024 were down 3.9%. Walmart, the recent darling stock in the last four weeks for Call option players woke up this morning with an earnings report which was healthy but with came with some caveats. Here is what happened. Perhaps the U.S. is starting ...
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Walmart. Does Five Days Buy You Enough Time?

Let's set the stage.
A five day chart and the current bid and ask on an "in-the-money" Call option by $.31 cents.
Notice the tight bid and ask. That's a good thing. Now this morning's early trading.
Light open interest in this series and light to moderate morning trading in these series on the opening. Would I want to hold onto a position like this for the entire week? It's kind of dangerous because at any moment an analysis could come out with a comment about "Christmas Retail Sales". It's something I would get into with the hopes of getting out of on the day. Imagine, people living south of the border that can find brokerages that don't charge fees on trading. In that environment nimble option traders can have a heyday playing options like this with a tight "bid-and-ask". Let's watch this one for a day and see what happens. Now this.
Thirty nine minutes later the stock is up twenty-two cents. What's nice about five day options is that time is not as much of a factor compared to trading options with only, one, two or three days of life left in them. Here we are now at 11:50 a.m. Call me chicken. I would get out. It's 11:50 a.m. It was a good ride with no hiccups. It doesn't always happen that way. Take a profit and run.
The end. Well not really the end. Here is how these Call options closed the day.They did actually hit a high or $2.02.00.

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