Featured

Another Blog On "Vinfast"

There is so much to read about this companies history online. Do your own homework. Their success is not dependent on what ends up happening with their sales in North America. They are nimble. There are plenty of auto factories all over the world now for sale they can acquire. They have dabbled in Australia. Having access to money to keep going doesn't seem to be their problem. Rivian also seems to enjoy this advantage. Vinfast is currently building a new plant in India which could employ thousands of people. That's an emerging new market. New relationships are being built and new investors will be coming onboard. Are option players looking at this stock? Not really if we look at these "one-month-out" Calls. What about Calls further out? What about next January? Here is a look at the three and four series of Calls. Nobody seems willing to bet Vinfast Calls. Now this. Here are two snippets taken from a blog I wrote about this stock back in early December of 2024. ...
Post a Comment

An Introduction

Online trading accounts. Some people call them a gift from the Gods! Instant access to a world of near endless trading opportunities. Seamless executions with one click of a mouse.

It's 2:30 p.m. on a Wednesday afternoon and the stock “Caterpillar” is down $2.15 on the day and up 30 cents in the last ten minutes. The DJI was down nearly 200 points around 11:30 a.m. and has now rallied back to being down only 40 points. Many stocks seem to be rebounding from their lows of the day. Would this be a good time to purchase a slightly "out of the money" Call option on "Caterpillar" which expires on Friday with the hopes that this upward directional movement will continue over the next twenty or thirty minute time period? That’s the length of time it might take for a Call option priced at $185.00 to jump up to $250.00 or beyond. After you deduct the costs of commissions you would still be left with a profit of $40.00 or so. Do that a couple of times a day. Not bad for observing a short term price swing.

You do not have to be a “Rhodes Island Scholar” to be part of this world. You are not going to lose your house to the bank if your early days trading create losses of $250.00, $450.00 or $650.00. It is more about using the knowledge gained from previous trades to evaluate the risks involved in doing your next trade. It is learning how to protect yourself from taking unnecessary risks like holding onto random options positions over the weekend when who knows what might happen. It's also about learning how to read to your intuitions.

My name is Peter and many moons ago I did a short gig as a “Merrill Lynch” stockbroker. I now work in an unrelated profession, but I still have a passion for day trading Call options (betting on stocks to go up) and Put options (betting on stocks to go down). Well hold on, betting is not the correct word. Nor or are the words speculating, hoping or praying. Perhaps a better word is anticipating. Anticipating individual stocks to make short term directional moves upwards or downwards.

I have designed this site to show people the types of trades I make and why I do them. Sometimes I win, sometimes I lose. I mostly do small dollar amount trades and there are times on some Fridays when I do multiple trades. I like Fridays for trading Call and Put options the best on options that expire that day because that is the day of the week you can get the most bang for your buck if you correctly anticipate which way an individual stock is going to move. One of my favourite stocks to trade options on is “Caterpillar” because daily swings of two or three dollars is often the norm and it is a stock void of most chatter.

There are times when I will take a week off from trading, knowing I will be not be handicapped when I return to the action. The world of option trading always offers trading opportunities. Without any further introductions let me share with you some of my most recent trading experiences.

I offer no promise of instant successes and I do not encourage you to do what I do. I just think that people in general will benefit from being exposed to platforms like this. Cheers.


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