Bought SBUX high and sold low and shortly after they replaced CEO. Bought a bunch of $80 and $85 NKE calls and it started to take a dive so sold those. Of course they replace CEO and thing pops. Total regard. Can someone pls tell me what to buy? I promise I won’t sell like a b&@ch this time
No you just need to be awake at opening and be ready to pay the new price. Or You can use the estimate feature to see the estimated cost that the overnight increase in value created.
For example let’s say stock a is at 10, and option b is at .10, so 10$ each. Then the stock overnight goes to 15. On robinhood it will say the price is .1 but that’s only because option don’t move overnight. As soon as it opens it will reflect the “actual” value of the option, let’s say 1, or 100$ each. It doesn’t mean you can place a .1 order at 8am est and think it’s gonna fill cause that option no longer worth .1, it’s worth 1 it’s just that you aren’t allowed to trade it till open.
Basically, no free lunch. If it was as easy as looking at which stocks went up overnight and placing arbitrage options plays at open everyone would be doing it. If you decided to just buy the option at whatever price after the 50% overnight on the stock and the stock didn’t go up further
you’d just end up actually losing money to theta.
In order to make money on options on lunar from yesterdays jump you’d need to have bought it yesterday before close, or earlier. There’s no way to be waking up on the morning and making this play
2019 was actually due to Trump’s tariffs on China that forced rate cuts to prevent a recession before Covid.
https://www.washingtonpost.com/business/economy/how-the-feds-interest-rate-cut-helps-trump-wage-his-trade-war/2019/07/31/db119e86-b3d6-11e9-8949-5f36ff92706e_story.html
B+