Featured

"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 ...
Post a Comment

Learning To Pick Your Battles - Walmart One More Time.

In the last week or so I have done four blogs on Walmart and each time I seem to show situations where traders can eke out small profits tracking the 91 or 91 series of Call options. What is the logic in such an approach? Well look at Walmarts one year chart compared to two other charts I have provided.
The difference of coarse is that Walmart's trading pattern has an upwards bias. One other factor comes into play in helping to make Walmart interesting options to play. The one dollar spreads between the "bid" and "ask" unlike the two dollar and fifty cent spreads between the "bids' and "asks" on stocks like Caterpillar and Boeing. This has the effect of making small changes in a stocks price more playable. Walmart also seems to have "less chatter". What do I mean by this? Well its not like Boeing which has scares of doors coming lose on their airplanes or like Caterpillar which is having to constantly adjust the size of their workforce. Does all of this mean Walmart options are for option players who take pride in being risk adverse? Not really. You still have to quick and nimble. Walmart for example jumped on the opening this morning as I am writing this blog and the 91 series of Calls are up 92% in the first ten minutes of trading.
Then look at the 92 Puts between 9:39 a.m. and 9:55 a.m.
...................
All this action happened in the first hour of trading! Walmart options while easy to play must be handled with respect. As a newbie looking at option trading I would suggest this is a good stock experiment with. Here is the morning chart which better explains how all this action happened.
How did Walmart end the day? Here is it's chart down below. If you caught the morning action you really wouldn't care.
The markets are closed tomorrow (thursday) for a presidential funeral so it's time to look at something else. Dicovering new opportunites is never hard to do.

Comments

Post a Comment

Popular posts from this blog

Living on Kraft Dinner?

Image
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 ...
Read more

The Little Engine That Could

Image
Walmart again. It's all I seem to blog about. Here is it's five day chart. The stock keeps going up and the option series are set up in one dollar spreads. Even a fifty cent move on the stock moves the needle on these Calls. Look at how this series of Calls was trading yesterday at 3:00 p.m.. Now here is this same series of Calls just before noon today. Thirty days of upward action like this punctuated by the off day of decline. Now notice the higher volume of trading in the series of Calls with the higher striking price. These are the ones's with more leverage. At the same time look at the five day chart on Costco. The two stocks sometimes trade in tandem. Humpty dumpty sat on a wall .... a had a great fall. Someday soon a fall might happen but what a great ride it has been.
Read more

A Fireside Chat - One Year Options and Thirty Day Options. Which is Better?

Image
Some say to think small, not big. Trying to play Disney options is thinking big. It is a stock slighty out of favor. If we start with it's a three year chart, we will see it is down by about 50% over that period of time. Now it's one year chart. If the stock can break 110 in early 2024 the sky is the limit. It does have a lot of moving parts so anything could happen. Look at these Calls options one year out. One year in options buys a lot of time.They look reasonable. If the stock ever inched up to the $105.00 price level in the three or four months these options would jump up in price by about 50%. Even more if they had really good news. Yet it's the "what-if" aspect of the equation that castes such a trade in doubt. "What if" stories just don't cut it. There are to many variables in play. Then again, why are we even thinking of long-term Call options after a December's rally? Let's switch gears. If consumers are out spending for X-mas...
Read more