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What To Focus On - Part Two

My blog of November 27th was entitled "What to Focus On". Please read it. This week we are feeling a bit of a hangover. Last's weeks triple witching event is over. Stocks that were forced to contract in price to sqeeze out spectatate positions on them are now free to resume there old trading patterns. This Monday morning at 10:20 a.m. the Djia is up 301 points. There are also losers. So now what? Mark on your calendar exactly three months down the road how the markets traded on the first morning after one of these triple witching events and use this same logic to catch the upside on the next "hangeover" day like this. How do you pick the winners? Find a few stocks that have enjoyed a recent upswing and play them to pop on the first trading session after one of these events. This blog is just an observation.

Boeing Calls on a Monday Morning And The DJIA Down 500 Points

Let's start with a few premarket opening numbers.
Not a happy opening. How do you tackle the week in option trading when it starts like this? Do you jump into Calls hoping for a rebound or do you stay away? Let's see the volume of trading on some of our favourite picks in the first five minutes or so of market trading. Note fifteen minutes into the trading day the DJIA is down about 500 points.
What is there to learn from this? Well don't expect a noon reversal. There might be buying opprtunities after three in the afternoon so sit tight and do nothing. Here are a few closing prices. Will the markets rebound and is this a welcoming buying opportunity for option players? No one knows and snap rebounds often accompany these major sell offs. Any kind of bounce on the opening tomorrow may be short lived. Here are the closing numbers.
Tomorrow we will look at "the open interest numbers" to try and see how positions increased as or if, computereized trading kicked in. Boeing seemed to sell off the least today making it look more interesting than others. Boeing has many daily news reports.

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