Featured

This One Is Too Nervous To Watch. Pfizer

This is a short blog full of twists. Try to get through it. First a five day chart of Pfizer. chart. In the past week it was up $1.05 and it was the 7th most activity traded stock on the NYSE most active list. It's in a breakout mode. Look at how it traded over the last three years. This breakout mode might last a few days, weeks or months. This stock has a history of moving somewhat slower than most stocks. A second quarter earnings report comes out July 30th. If it's good that could add a touch to the stock's price. Now this. As a general rule stocks and options on stocks in this particular price range are difficult to play and in this case everyone is following the same story. Fred down the street and John around the corner and Mark across town are all dialed into the same commentary. There is nothing that really gives you an edge when it comes to playing it. That's the problem. Here now is a look at the Pfizer "next-week-out" $30.00 series of Call optio
Post a Comment

Boeing Calls And Caterpillar Calls Five Days Out On A Monday Morning.

First Boeing's 30 day and 5 day charts. Boeing can bounce five dollars in a week. That's what some traders are now hoping for.
Now look at these two series of Calls and look at the impressive number of Call options opened in the first 30 minutes of trading.
Traders are even jumping into "out-of-the-money" Call options thirteen dollars higher in price than what the stock is now trading at. If the stock was to ever jump four or five dollars in one day these options would pay off handsomely. If not they will quickly languish in price.
Now lets compare this to the trading volumes in the first 50 minutes on Caterpillar. Here are its five and 30 day charts.
Notice how light the trading volumes are in comparison.
Why is the option trading volumes in Boeing so much greater than the option trading in Caterpillar? One reason might be the way this Boeing chart looks on a longer term viewpoint. It explains why Call options once again $13.00 dollars "out-of-the-money" are attracting attention.
Investing in Call options on a Monday morning is to simplistic a strategy from my point of view. In my last blog I talked about Caterpillar jumping sharply on the previous trading session, a Friday. Guess what? The rally carried over today. Here is how the trading day ended for Caterpillar.
What about Boeing and the wildly "out-of-the money" Calls? Well here is it's current five day chart and here is how the two series of options we were watching closed. Boeing only inched up a touch.
Note the 200 series of Calls did not do that well as buying into them is kind of a stretch. All this action today is somewhat atypical. READ MY OCT 3TH BLOG. "BOEING-TROUBLE WHERE TROUBLE SHOULDN'T BE".A Tuesday Oct 10th update. Here is a look at the 190 Calls five minutes into the opening trading. Boeing is up.
Here now is how the five day chart looks.
To be continued. Well maybe not. The point of this blog was to say that buying one week Calls at the start of the week is not the brightest thing to be doing.

Comments

Post a Comment

Popular posts from this blog

I Wonder How The Back Office Is Going To Handle My Complaint

Image
The blog is about dealing with the back office of the brokerage company I trade with. This story happened today. Todays trading session has closed and I just made a telephone call to them just after the market closed to voice a complaint over how I feel I got short changed. Here are my background notes. 1) It involves trading the 370 Boeing Puts that expire at the end of this week. I bought in at 10:08:34 a.m. and sold out at 2:59:38 p.m. I was stuck in this position longer than I had hoped. I got lucky and did O.K., however that is not the point. 2) Here are my two "in-and-out" tickets. Two contracts in at 10:08 a.m. at $163.00 each and two contracts out then "at-market" for $365.00 each at 2:59.38 p.m. Now here is Boeing's one day chart. It dropped precipitously from 2:59:00 p.m.to 3:00:p.m. I just happened to be watching it at the exact time of the crash. That's when news came out that the "FAA opens Now a Boeing Inquiry over 787 inspections"
Read more

Boeing Down $20.00 or 8.03% On A Monday Morning

Image
Don't buy in, it's going to be a struggle.There is going to be too much guessing in-the-air in the near term. What happened? A door hinge problem or something. I am suprised with the millions of miles their planes fly filled with with all kinds of heavy things they don't loose wheels, wings and windshields. $400.00 dollars will now buy you a option contract on a 230 Call which will expire this Friday. That means the stock will have to rebound $5.00 just to get your money back. It might however there is nothing tangable to say it will. I don't like those kind of trades. So many pundents will now be commenting on what has now happened until we are tired of hearing about it. Let's just watch the action and see what happens. Now here is what happened on the next day. Can you see how these options have now dropped half price? That's what I wanted to avoid. Now is it time to try and rethink this position? If your still thinking about the upside it's still a high
Read more

Disney Had A Good Week, Fisker Not So Much . Lion Electric and Taiga

Image
First, it's one week chart. Here is one of the reasons why it is up. India is a marketplace with 750 million potential viewers! I have talked about Disney in some of my most recent blogs. Short term Call options on it did well this week as they did two weeks ago. So one question is - "How can you anticipate action like this?" Well it helps when the stock is in a general uptread. Here is it's three month chart. India is not the easiest country in the world to do business with. Starbucks went there in 2012 and now over ten years later it has only 390 stores. Ford pulled out in 2021 after starting to build cars there in 1926. The number of Domino Pizza stores is growing. I admit that this isn't an exhaustive analysis but my point is we should not expect this Disney news to rocket the stock to the moon. It did however create a profitable trading experience for option traders for a couple of days. Buying in on news as it is being disseminating is often a recipe fo
Read more