The Temptation of Buying A One Day Call On Thursday Afternoon.

It's usually better to wait until Friday morning and then deciding which way the markets might go. They can however on Thursday afternoon be tempting. Thursday was a trick with Boeing only up $.02 cents on the day. Here is it's one day chart. Playing it from (9:30 a.m. until 11:00 a.m.) was the way to go. On Wednesday we referenced Boeing looking like it's old self again. Now look at this. Focus on the chart from 1:00 p.m. unti 2:30 p.m. That period of time could have got Call option players excited. Experience also tells us that the 2:30 p.m. - 4:00 p.m. period of time is one of most dangerous times of the week to be looking at Call options that expire the next day. Now here is it's full one day chart. From 2:30 p.m. until 4:00 p.m. it really did nothing, with no indication of would happen on the following morning. Do your own homework to see if you concur with this logic. Now Friday morning and the one day options that expire at 3:00 p.m. this afternoon. Only 355

Biogen - A Tough Cookie to Play

Drug stocks are difficult to play. One year ago to this date Biogen was trading at $292.20. Today its at $193.61. That's down almost $100.00 on the year. Now look at it's three year chart. Back on May 11th 2022 the stock dipped down to $191.07. So the question now is will that now be a support level? That could be something to watch. How do you play options on a stock which has dropped for a year or more? You can't really. The system, for lack of better words has a built in defense mechanism. Let me try to explain it this way. Yes I think a rebound might be imminent for technical reasons however there are barriers to entry. Look for example at how expensive the one month out Calls are. A May Call contract (one month out) slightly above the current asking price is $8.00 a contract. When was the last time this stock ever went up $8.00 in one month? Well there was one $10.71 bounce between March 6th 2024 and March 12th 2024 so in theory anything could happen. Yet having sa

A Monday Morning Let's Start Off The Week Blog. Boeing

Boeing had a rough week last week. It was down $13.59. Now here is a 11:00 A.M. look at one series of Call options that expire this week. Now here is it's morning trading chart and it's five day chart. Tuesday was a touch better. Look at the 30 day chart. Could this be the start of a rebound? Now the one day chart and how the markets closed. This chart is now starting to look like the Boeing we know. A tough start to the week and Wednedays are often days of reversals. Not this time. Thursday. It offered a chance to get out in the morning and after that the nervousness of holding onto a postion going into a Friday morning spooked option traders. The stock only end up $.03 cents on the day. This chart better illustrates the hour-to-hour trading volumes and prices.These Calls opened down and quickly shot back up again. to be continued.

A Monday Morning Let's Start Off The Week Blog. Roku

Roku. A week when one of it's competitors called Netflix has an earning report coming out. A five day chart just befoe 10:30 a.m. Monday morning. Roku is in a sideways moving formation. Look at these Call options which will expire on Friday. Here is it's three month chart. Can you see how it is in a waiting game with low volumes of trading? Now this. A look at the same option series fourteen minutes later. They still have about thirty hours of trading life left in them. (Netflix was down $15.68 today). Now here is how the 60 series of Calls closed on the day and a chart of how the stock traded. What is there to make of the high volume of trading coming into the stock on the closing? Not much. Cathie Wood bought 93,186 shares of Roku on this day and ARKW ETTFs with a total dollar of $5,581,841. Yet then again one day after I wrote this blog the trading volume on Roku was 3.4 milliom shares in one day. When people of preceived investment savoy buy in other people take notice

Slice and Dice Caterpillar and Tesla Options On A Friday Morning at 11:59 A.M. , During A Downward Moving Week.

This blog is about short term option trading on options which expire in less than one day. A proposterous proposition one might say. I agree, however if you are serious about learning how option trading works the following scenarios of what I am about present are all quite revlevant. Let me begin with the observation that there is next to no trading in Caterpillar Puts or Calls of these two series of slightly "in-the-money" or near to being "in-the-money" options as illustrated below. One of the things that this tells us is that there is no inside news of anything "in-the-pipelines" which might cause this stock to move up or down during the remainder of the afternoon trading session. Caterpillar as often mentioned before in previous postings is not big on making news releases. In contrast, Boeing activities seems to create some sort of news or a reaction almost every other day. Here is what the markets are doing as of 11:36 a.m. which is Friday April 12th.