Posts

Showing posts from 2025

Featured

Towards Understanding How Some Companies Have Their Option Series Set Up Differently.

Trying to understand what a company does is often a mindless exercise. Look at these company names. HubSpot, ServiceNow, Cloudflare, Dynatrace, Broadcom, Tradeweb Markets, Vertic and Quanta Sevices. The list of how many high tech out there is overwhelming and some of these stocks trade in the $600.00, $700.00 and $1,000 range! So when I do my little blogs tracking movements of like one dollar on Walmart that get me excited what world am I really playing in? Hold that thought. Some option traders like to play options on stocks where the striking prices and days to expiracy are structured in a different way. I now want to show you one example of what I am talking about. I will use the stock Interactive Brokers to show you how things are set up differently. There are countless other examples I could use. Now it's last five days of trading. It's up five or ten dollars in two trading sessions. Now there are two things I want to point out. First is a calendar list of when options ...
Post a Comment
Read more

Towards Understanding How Some Companies Have Their Option Series Set Up Differently.

Image
Trying to understand what a company does is often a mindless exercise. Look at these company names. HubSpot, ServiceNow, Cloudflare, Dynatrace, Broadcom, Tradeweb Markets, Vertic and Quanta Sevices. The list of how many high tech out there is overwhelming and some of these stocks trade in the $600.00, $700.00 and $1,000 range! So when I do my little blogs tracking movements of like one dollar on Walmart that get me excited what world am I really playing in? Hold that thought. Some option traders like to play options on stocks where the striking prices and days to expiracy are structured in a different way. I now want to show you one example of what I am talking about. I will use the stock Interactive Brokers to show you how things are set up differently. There are countless other examples I could use. Now it's last five days of trading. It's up five or ten dollars in two trading sessions. Now there are two things I want to point out. First is a calendar list of when options ...
Post a Comment
Read more

Why Two Day Options Are Not Where It's At

Image
If you just jumping into this blogging site for the first time I want to say that this blog will be one of the most unfriendly bogs to read. You are catching a snippet of a series of blogs about short term option trading. I have often said that options with two days to go are my least favorite options of the week to play. They are "flip-of-the-coin" situations with the passing of time values eating up a substantial part of the option's premium. Monday morning one week options, Tuesday afternoon options which expire on Friday and Wednesdays options which also expire on Friday and which often benefit from weekly directional shifts are free of these time value worries. In other words, don't be holding Wednesday options going into Thursday. One more don't. Don't open up positions on Call options which tend to be a bit more expensive than Put options on Thursday options which expire the next day. Yet having said that sometimes in the last four or five seconds of tr...
Post a Comment
Read more