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Waste Management Again

Last Friday I did a blog on Waste Managemnet showing how it closed strong on the day. I showed how it's Call options also got dragged up and my point was that two week out options are sometimes a sweet spot in the market. Here was it's one day trading chart on Friday. So this morning, a Monday morning I checked it out once again. Here is how it was trading. Now let's skip ahead to the end of the day. Here is how the same Calls are trading. So in two trading sessions they went from a low of $3.43 up to $5.60 with no thoughts about "time-value" working against you. Here now is it's five day chart. Option trading doesn't always have to be about making "all or nothing" trades. *** Earnings came out. This is a good example of pre-earning option trading.
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Boeing on a Monday Morning / Then on Friday at 3:00 P.M.

The DJIA is down again. That's not really a suprise.
Now a look at one series of an "out-of-the-money" Call option that expire this Friday.
Throwing good money into the wind you might say? Now this. A look at the same series of Calls on Boeing at 3:00 p.m. on Friday near the end of the trading session.
I don't like trying to play options on stocks like Nvidia, Apple, Meta Platforms, Amazon or Microsoftware. I don't feel I know enough about them to trade them on a daily basis. All least with Ford or Walmart or Nio or Tesla or Eli Lilly or McDonald's or Rivian or Netflix I have a fuzzy feel as for what happening with the working environments these companies find themselves to be facing. At least I think I do. Rising food costs will now hurt Costco which imports food, tariffs will hurt Ford who send vehicles across the border and higher unemployent rates will mean less people will visit Disney. These are all causal relatinships. The cruise ship companies were in a good space to be in after the pandemic. Five years ago it was always wise to buy Calls on Home Depot on a Friday if a hurricane was coming. Now not so much so. There are also caveats. I like Nio because their sales are going up. Yet how reliable are sales figure numbers coming out of China? Are buyers there getting government subsidies? We will never know the entire story. Caterpillar and Deere are difficult to play because of the high levels of instuitional ownership. Investment gurus can put spins on things which send these two stocks flying upwards in price or crashing downwards on assumptions or theories that the common man will never be privy to. A few months back I got hung up on Walmart Calls which predictably went up for a one month period of time. These options trade in one-dollar increments which made the near smallest of price movements on their Calls playable. People were turning to Walmart (at least that was the theme in play) to save money and Costco and Walmart were jumping upwards to the moon. That sentiment has now shifted as people now are worried about the effect of tariffs on the cost of food. We are moving into a world of tariffs. Eight weeks ago that was of less of a concern. I remember Russia invading Ukraine back in February of 2022. Barron's magazine at that time had a cover picture of people in an urban setting trying to get across a bombed out bridge. It was a horrific photo that shocked the world. That was another time when it was best to stay away from option trading. Once again we are in a "stay-away-from-option trading" zone. Nothing seems to makes sense. Boeing somehow survived the week unscathed. I don't like these markets.

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