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Ford Calls and a Big Surprise.

Look at this Ford chart on July 1st. Now todays Call options. Every quarter these types of reports come out. This one was good. Watch for it Next July 1st. A $2.00 option went up to close at $37.00. In my introductory remarks to this blogging channel a few years ago I said many old farts driving Mustang convertables paid for them from money made on playing Ford options. This bounce today in the Call prices based on this good news report of rising sales was one of those events. Now this, the strenght continued into the following day which is Wednesday July 2nd. This is a short week for option trading with tomorrow being the last day. Action like this is extremely rare.
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Rethinking Setting Up A Deere Position One Week Out

A rough opening this morning.
A news release which I thought wasn't all that bad. Rising sales during a period of covid!
A further morning decline in a market which was holding it's own in the first hour of trading.
What to do? Why not buy a Call with one week to go? Here is what they cost at 10:13 a.m. and here is what the five day chart looks like as of 10:30 a.m.
But wait. The markets sometimes turn south in the afternoon and more importantly the trading volumes on Friday afternoons often dry up. Look at how the markets (the DJI is selling off). Might it drop more on the day? Why is there now a rush to play the upside? There isn't but look at Walmart and Netflix. They both have a similiar story.
We will soon be going into a Friday afternoon, which is not a period of time when the markets tend to rally. My interest in looking for a rebound is now waning. Here is how these Calls closed out the day. The problem now is that this particular series is now to far "out-of-the-money" to consider.
Here is the closing one day chart.
Fridays in general are not good times to be looking for reversals. These markets as of late are wicked. Deere lost $51.31 on the day. (This chart doesn't show the lower gap opening which was a big chunk of the loss on the day). Walmart also lost over $25.00 in one day a few days back. It's a market where everyone has lost money. Clear skies will be slow in coming back.

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