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Eli Lilly

When a stock drops over $50.00 in the first three hours on trading one a day and when the DJIA index is up can you play it for a one or two day partial rebound? $9.00 or nine hundred dollars gets you in. That's the question now being asked and based on the number of new Call contracts being purchased the answer is probably no. As of 11:50 a.m. I can't find any news to explain this drop. Now this, if you just came off a morning gain from trading Tesla Calls, see my last blog might you be willing to part with some of these winnings? This could be another short term opportunity given that the D.J.I.A is so strong. Lets check out the action in thirty minutes. The stock is up $3.81 and the Call options went from $9.00 to $11.80 in thirty minutes. Do you take the money and run? Very few traders are speculating in this series of Calls. There is the danger that in this kind of situations that a second shoe could drop at any minute. Yet the DJIA continues to remain positive. That sho...
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Young People And Options

Let me spill out some information. Next-Generation Investors Are Different. An organization called "Finra" published this information. In a 2021 survey the Finra Investor Education Foundation found that 36% of respondents aged 18 t0 34 said they have traded options. That compares with 21% of respondents ages 35 to 54 and just 8% of respondents age 55 and older. Then there are crypto investors. According to something called a Pew Research survey based on Feb 2024 data, 42% of men aged 18-29 have invested in, traded, or used cryptocurrency compared with 17% of women in the same age range. Interestly, just 17% of all adults say they have invested in, traded, or used a cryptocurrency, according to the same 2024 survey. When it comes to buying on margin,in 2021, just under of a quarter, or 23%, of investors ages 18 to 34 said they have made purcheses on margin, compared with 12% of respondents aged 34 to 54 and 3% of respondents age 55 and older. Opening accounts is now easier and there's an explosion of new sources of information and social networks that can encourage risky behaviors. Let's not forget the recent frenzy of meme stock trading. Robinhood knows all this and works in this space.
Look at how it's stock has traded in the last one year.
My point is that young people are experimenting with option trading and the trend is only going to continue. Pick twenty or thirty stocks and just watch them for a few months. Write down turning points you see happening and check out how much at that point in time a Call or a Put costs on any series you pick. Then check back later to see if you were correct in making such a call. Option trading, unfortunately is very much a self taught process.

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