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Late To The Party Option Players - Disney

Can late to the party option traders make money? It's something to consider? These Call options expire this Friday. There was news on it before the opening today. The second chart below a few minutes later shows it hanging tough. At 10:01 a.m. we now checking out the Puts. The bid and ask on the Puts are very tight. That also makes us ask what happened to the Disney 101 Calls that we first looked at? Here is what the chart now looks like. More Call option players have jumped in to play the upside that the downside. Might one do a spread and try to play it both ways hoping for a breakout either way? That's an option to consider. Disney has being a dog of a stock now for a year so might some profit taking set in? How is Disney going to pay for another theme park? With that on their plates forget any share buy back programs. They are taking on new risks in a period of global uncertainity. Are late to the party option traders best just to stay away from this unexpected situ...

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.

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