One Week Options. Are They A Good Bet In Times like This?

Look at how these these four stocks traded last week. 1) What a great week for one week Call option players on Boeing even though the stock ended up down .83 cents on the week. 2) Roku. Roku hasn't yet recovered from a not so good quarterly report. Roku lost $1.13 on the week. (Netflix in somewhat the same space was up $35.780.) 3) Disney suprised. I talked about that in a recent blog. 4) Now Caterpillar. It was up $12.83 Now The D.J.I. was down .11% or basically flat. In good times Call options can be your best friend. To be continued.

Interday Trading Opportunities. Feb 15th - Boeing

Let's talk about Boeing. The stock was down $1.01 on the day. Here is it's early morning chart.
Call you see it drop a touch before 10:a.m.? Now here is it's chart on the day.
Here is what I did.
In at 9:45 a.m. at $365.00 about ten minutes to early and in at 10:04 a.m. at $305.00 just as the stock started to rebound. That was good timing. I was buying the 215 Calls which expire in three days. That was a chunk of money and what I was really hoping for was a $2.00 quick rebound. That didn't happen and I quickly found myself babysitting something I really didn't want to be in. You can also see my second buy in above. Now check on the chart to see the action between 9:30 a.m. and 11:30 a.m. when I was in this position, now with two contracts. I got tired of waiting and I was lucky to get out before the selloff that happened around 12:30 p.m.. You can see my sell ticket and it's timing also on the ticket shown above. Out of both contracts at $380.00 with one sell ticket. I still liked Boeing as it had a big airplane order this week. My focus for the week however was to shadow the market and take small quick profits. I made less than $70.00 on this one and I found myself stuck in the position for almost two hours waiting for a pop. Talk about painful. Then I double dipped. I seem to have a high threshold for pain. I witnessed Boeing selling off a bit after I got out and I wanted to get back in the action. This was forty minutes after I got out. I was now hoping for an afternoon rally.
I bought back in at 12:10 p.m.. Look back up at the chart again to see where Boeing was at then. It was off in price. My timing to get back in was good.This time however I wanted more upside leverage so I moved the striking price up one series. This time I purchased the 217.50 Calls (vs.the 215 Calls) which was a higher risk but offered more of a return if the stock rebounded quickly. He is what I did.
I bought four contracts at $.96 each at 12:10 p.m.
I got out after waiting just over 1.5 hours to make $25.00 less commissions on each of four contracts. I got out at 1:42 p.m. at $121.00 a contract. That trade was a touch smoother. No one was giving out free money today. Boeing closed the day down $1.01.


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