Why Not To Buy Not Rivian Calls With Two Days to Go?

It's obvious right? If you mess up and the stock opens the wrong way you only have one day for a rebound. Why put yourself in that position? Others might be in the camp of saying why not go for a fifty percent rebound on Thurday's morning opening. The stock sold of on Wednesday on very little volume. A morning pop is possible. The stock has being strong as of late. Here is it's five day chart. Now this, the seventeen series of Calls that expires in two days. They do look cheap after hitting a high of $1.55 on the day. If we look at a 30 day chart we will see that the stock is still in an uptrend. Why not look at the Call options one and two weeks out? Here are the seventeen series of Calls one and two weeks out They would be much safer to play and I will check in on these ones at a later date. So what happened on the Thursday opening? Let's switch gears for a moment and look at how Roku, a much higher priced stock opened and look at how their Call options moved.

Boeing on a Monday Morning

Last Friday saw a 500 point drop in the DJI. Could you play a Monday morning rebound? I did. I bought in at noon on a friday and on a day where the markets were crashing. Why did I buy in? Sometimes Boeing is first out of the gate on a Monday morning.
Now the sale on Monday morning.
I was out at 9:55 a.m. Why did I get out? When you turn your computer in the morning and see a Call option you own up four or five dollars you know you have to do something quickly. With Puts not so much. Smart investors just get out. As quickly as it goes up it can also come down. Get out without even researching why it is up. Learn to be happy to catching a blip. That's the way I think. Last week the only real news I saw on Boeing was that they have enough orders on the books to keep everything running. That means money coming in as fast as they can make them. Getting out of the Call option was a little bit of a hassle as it was just starting to sell off. I am always afraid to sell "At Market" to avoid bad fills. Decisions have to made quickly about your offering prices. The value of one $500 Call or Put can fluctuate by $100.00 in as little as one minute. I got out, as the ticket shows at 9:55 a.m. I got as it was first starting to tank. Look at the one day chart Boeing chart below and see my exit timing.
To be continued. Now Boeing on a Tuesday starting with a one day chart and the trade I did. I am not a big fan of Tuesday option trading, Wednesday option trading is more interesting in the afternoon when stocks decide which way they want to go for the week. Here is the Boeing chart for Tuesday.
If you look at the timing you will see that I only caught half the uptick but the action on the day ended up trending lower. Now here is it's five day chart.
** Caterpillar's one day chart looked much the same.
Remember in a recent blog I talked about Wednesday afternoons as being a safe time for short term directional moves. Here is an "in-and-out" trade. Compare the buy in time and sell out time to the chart provided. It wasn't much of a trade but I felt safe making it and was out before the close. Remember, this is the third day in a row of catching a directional move on Boeing. I don't like playing Boeing options on a Thursday.
This was a two hour and thirty-nine minute trade and my timing was off a bit. I got out. I don't like holding onto short term overnight options on a Wednesday going into Thursday. * Remember my comment near the start of this blog when I said if you see something move big in your favor just get out and ask questions later? Here is this morning's chart on Moderna.
Getting out at the top is the name of the game.


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