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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.

Watch Boeing Jump On News

First some news as the markets opened. Horwmet Aerospace offered this sobering news.
Then good old Joe made this statement.
Now the opening chart.
When I see opening charts like this I always want to play it in the opposite direction. What was my take on all of this news. New contracts are great, people are flying again and ticket prices are up. It's all good but Boeing doesn't really need more deals and orders. They are still trying to get back on track. Would this morning bounce go away? I thought so, I jumped in on Puts.
In at 9:45 a.m., 9:48 a.m. and 9:50 a.m. . I was confident in what I was doing but the stock seemed to stay persistently high.
Then I got frustrated with how it was trading and bailed out.
I sold all four contracts at 10:42 a.m. at $2.61 per contract so I only made a touch. I was in this position for just under an hour and was starting to worry about a second wave of buying coming into this position.
This chart above illustrates how they jumped higher in price after I got out and the chart below shows how Boeing traded on the day.
In hindsight these Puts reached a high of $3.70 at 11:50 a.m. I also did a short chase of Boeing as it rebounded but once again didn't have the patience to stay with it. Here is what I did.
In at 11:51 a.m at $375.00 and out at 12:29 at $430.00. a period of time of 38 minutes. I left good money on the table. I went on to successfully trade Visa on the downside and got out of that position 3:59:21 p.m. The DJIA closed down 156 points on the day. Visa released this news after the markets opened this morning. It sounds ambitious but seems a touch risky.
* see my most recent blogs about playing Visa.

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