Pick Your Spots To Play The Downside.
It's Tuesday morning and Boeing jumped up $17.30 on the previous day. That's a jump in the stocks price of 8%. Here is it's one day chart. There was news. It helped that the markets in general had a good day. Will the stock jump again on the opening? In premarket trading it's slightly up. Can you catch the downside action with Puts on the opening? Should you? Is fighting a strong stock a stupid thing to do? Here we are three minutes into the trading action. The stock is only up a touch yet these two series of Puts are down, one series 37% and the second series 41% and the trading day is just opening. Both are super leveraged trading vehicles. But wait. The bad news is that the markets are surging up. Caterpillar is on fire. Is hanging around with Boeing Puts a smart idea in times like this? Not really. Just get out. Get out. Forget this ever happened. Who cares if these Puts go even higher. A ten minute trade lets you get on with the day.
