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A Random Walk In The Park On A Monday Morning. A Caution. Monday Mornings Are Often Not An Option Players Best Friend

Let's start with this. It's now 10:26 a.m. A bet on Caterpillar rebounding by the end of the week. There are no takers. Why have to watch the screen for the next four days in agony waiting for a rebound which if happens is just a "break even trade"? But Wait. I made a mistake. The market is actually now down 668 points. What else can we look at? Interactive Brokers. These kind of stocks always do poorly on days with the threat of margin calls. Yet there is something interesting about the printout I am about to show. It is that these options are "one-month-out" Calls. These longer term options trade differently than short term options. (these options trade in one month intervals). If the stock we are following stops it's freefall the value of the options will nudge up ten, fifteen or twenty percent. A seven dollar option Call might creep back up to $8.00 or $9.00 at which time it could be sold. In contrast with a five day option a slight reversal in ...
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Walmart- Unexpected Simplicity In Option Trading

If it goes up you make money.The stock is in a sweet spot. Look at it's chart.
I did blogs on Walmart on December 16th, 19th. 31st and Jan 7th and 8th. Stocks in the $90.00-$100.00 price range will swing a dollar or more everyday and the option series are set up in $1.00 increments. Those two factors alone are the key ingredients that draw me to this situation. Read my past blogs on Walmart to get a better sense of what l am talking about. Yesterday was a big day for Walmart options.
Do you agree these options are playable? I think they are. Yet maybe in a week or two my view about this one will change. Please my past few blogs on this one to get a better handle on why I like them. Once again, I think it's in a sweet spot. Now the Jan 30th opening.

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