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A Scenario For Insider Trading.

I think something suspious happened today but I have no proof. It's what happened to Boeing Calls. First it's one day chart, on a day the D.J.I.A closed down. ,,, Can you see the stock spike at 1:18 p.m.? What was that all about? Why on a Friday afternoon? That is when there are Call options expiring in a few hours. That's when anyone privy to this infornation just prior to it being "hot-off-the-press" would be buying in. ... ..... ... One could say that this was an anticapated event with teams of employees at Boeing negotiating terms and conditions. They would be in the know. If you think about it the release of "purchasing news" like this should be limited to happening only when the North American market's are closed. In that way news like this would have more time to be disseminated. But what about air crashes, gold and diamond mines flooding out and workers going on strike? Market trading is what it is? It doesn't always seem fair. I es...

Toyota

Very few option contracts trade on Toyota. I have wondered why and offer one potential explanation. It's listed on multiple exchanges around the world and "option makers" in North America are basically just following the action. If the markets open stronger in North America that means Toyota traded stronger overnight on markets overseas. Secondly, the Calls and Puts trade in incriments of five dollars.There are for example 135 Calls, 140 Calls, 145 Calls. Having a five dollar spread wipes out the incentive try to daytrade option series which are soon to expire. If the stock moves from 142 to 143 the "bids and asks" on a 140 series of Calls might hardly change. It's not like trading the stock like Boeing where you can get in and out with option series set up in increments of $2.50 . Here is it's one month charts. The company now has a new C.E.O who is getting criticized for not moving to go electric quickly enough.
What I am now about to show you might discredit some of my above points. It's a five day chart on Toyota and look how all the action seems to happen on the opening. Why? It's the effect of overnight trading on other markets. Our North American trading follows Toyota's overseas market trading.
Now back to my point of how contracts trade. A volume of three and twelve contracts in the 140 Calls and Puts series that expire soon. Look at how wide apart the "bids and asks" are and how low the outstanding number of open contracts are. It's crazy.
Toyota is a great company. It's just not one that attracts option players.

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