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Boeing Jumps on A Friday Morning On Good News.

$2.25 for a Call option already $1.28 in the money with only 541 open positions.That's where things are at going into Friday morning's trading action. Now this premarket news. Now this. Now this at 11:00 a.m. What are the odds of this happening? Well it's a company with a million moving parts and it's a company that can suprise. In a way I was happy to see the "open interest" numbers being so low going into the morning's action. Insider's don't appear to be tipped off on this good news. Ps. Here is how it ended up closing the day. It jumped on the opening and stood it's ground. Could you have made any money buying Calls just as the markets were opening? Not really as here is how it traded on the day. You could have made money however if you bought in on the first early morning dip and then gotten out about twenty-five minutes later. That's a strategy sometimes employed when trying to play "last-day-expiring" options. The play...
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The Power of "Ford" Options

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Why am I stuck in the mud watching Ford when there are hundreds of more exciting stocks to watch? That's a good question. The answer I guess has something to do with the concept of leverage and how options on stocks in the five to fifteen dollar price range can sometimes have explosive moves based on percentage increases in short periods of time. Look at this week's chart of Ford and look at the opportunities it provided option playes. So the question then becomes how is it possible to anticipate these moves? Well the first big move upwards on the far left hand side of the chart was an earnings release explosion. The following chart better shows how the stock traded in the few days leading up to the release of this news. That was an instant double if you were paying the short term Calls. In at 3:58 p.m. on the previous trading day and out at 9:34:00 a.m. on the following morning. Trying to anticipate earning reports is tricky. With Ford there were reports of chip shortages...
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