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Apple Charges Downwards Towards The Close.

What does a downward spike on the closing mean? Does it mean something different than a upward spike on the opening? Spikes upwards on the opening happen on good news. Spikes downwards on the close are not necessarily for company related issues. More often than not it has more to to do with just getting out of the market. Case in point Apple dropped in price rapidly towards the close to then only being off only marginally after the close. A sense of stability was created with that reading . So are Calls on the upside the way to go? Let me show you two different series of Call options with the intentions of pointing out how "in-the-money-Calls" trade differently than only slightly "out-of-the-money" Calls. First the "in-the-money" Calls. Now the only slightly "out-of-the-money" Calls. Let's watch to see the difference.
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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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