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Exxon Calls Options And War.

Last Sunday I started this blog and never posted it. Here is how it started. The next few weeks will not be normal times for Exxon options. Trading them for the last couple of months has being a walk in the park with crude oil prices stuck in a sideways moving price range. All that is suddenly going to change. Now on Tuesday afternoon I am showing you this five day chart and what one series of this week's Friday expiring options are trading at. The 152.50 series of Calls that expire this Friday. Now this at 3:13 p.m.. Let me point something out. Exxon spiked on both Monday and Tuesday morning. It seems to do that with the world waking up to new problems. In the opening minute or two of each trading session a feeling of panic is in the air. Will this happen again tomorrow morning? In my most recent blogs I have being emphasizing the new need for option traders to adjust their trading horizions to interday moves only and to avoid to trying to create overnight holdings. Let's wh...
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Ford's Largest One Day Share Price of The Year - Or Santa Claus Came Early.

Ok, so yesterday, a Thursday I looked at Ford because management was in the news saying they are going to stop taking more preorders on their upcoming F150 electric truck. They have too many orders. They were also saying look out world - we are going electric. V.W. and Toyota were also making similiar claims. Here is a look at Ford at 12:11 p.m. today.
At noon Ford was up 5.6% and their short term options which expire today were up ten fold. Stocks the size of Ford seldom jump that much in one morning. Why didn't lightbulbs go off in my head yesterday saying lets take a flyer on Ford Call options for tomorrow with one day's trading life left in them? That would be the Dec 10th 20 Calls. As you can see, the 20 Calls this morning went from .06 or six dollars a contract to .61 or sixty one dollars a contract at noon! Then looked at how they ended up the day. A .06 or six dollar contract would be worth one hundred and forty three dollars! A six hundred dollar investment would be worth fourteen thousand and forty three dollars.
Let's pause for a few seconds. I don't make this stuff up. It actually happened today. It was Ford's largest one day share price rise of the year.
Look also at how the Ford 21 Calls traded today. They are the Call options with a striking price one dollar higher. No one really expected the stock to pop another dollar after rallying on the previous day. Boy so many people were wrong. Ford exploded upwards on the opening again like it did on the previous day and shot upwards to the moon. Near the start of the day the Ford 21 series of Calls traded at .01 or one dollar. Then look at what happened! The Call options that started the day at one dollar a contract ended up the day at forty five dollars a contract! A one thousand dollar flyer with the Ford 21 Calls could have made you enough to puchase a decent new car.
Sometimes when I see old men with no hair and glasses driving shiny Mustang convertibles around town I wonder if they paid for them with their profits from playing options on Ford.

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