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Day Trading One Month Out Options. Learning To Skim The Tiniest Of Moves

This blog is different. It's about skimming small profits on one type of option in particular. It's also my story about how to make the time value of "one-month-out" options your very best friend. What I am about to try to describe to you is a phenomenon of wrongly calculated time values built into option pricings. Wrongly calculated from the perspective that some option prices (their "bids and asks") are over-sensitive to the tiniest of pricing swings. Who am I to make claims like this? What credentials do I bring to the table? I don't want to tell you as I want to keep my identity a secret. Let's just say that I have being trading options for a long time. Over the years I have learned that "nine month" or "one year out" Call options or Put options on stock's in the ten dollar price range are often mispriced. As example, I have followed the stock "Ford" for like forty years and to me it's January Call options a...
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Boeing Calls After Two Strong Upward Days of Trading

This blog follows a blog two days ago following the same thing. This time it gets more interesting as the stakes get higher. Here is how the Boeing did on the day. Will it keep risng tomorrow?
Here now are the premiums on the 190 and the 200 series of Calls we talked about in our last blog.
Now the 200 series.
In our previous blog these trading numbers were $1.92 and .31 cents. At some point in time in the near future the 200 series Calls will burn themselves out if the stock doesn't pop higher. It could. Let's see what happens next. The volume of Call option activity tripled over what happened the day before. Rising stocks attract attention. Thursdays and Fridays may suprise on the upside but Wednesday mornings can sometime bring reversals. Mid week option trading (Wednesday) I enjoy doing usually centres around one hour plays just afer lunch. Everyone trades differently. I would be getting out of Boeing after a little surge like this. More to follow. Now the action in early morning Wednesday trading. Note I talked about how this day of the week can have reversals. As Boeing opens strong look at how the "out-of-the-money" 200 Calls surge upwards. Look at how the 190 series of Calls keep going up.
Now here is where the Wednesday change of attitude can kick in. Look at these two 12:24 p.m. readouts. Boy things have changed. The 200 series of calls after a spectular run could now be toast.
Finally, this how Caterpillar closed the day.
What's next? What is the sweet spot? Well it's not six dollar Calls that expire in a few days.

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