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Novonordisk On Bad News

It crashed hard. Yet another chapter in it's story. It's not a company that is going to go away. They have sales in the billions of dollars. When the dust settles the stock might gain back what it has just lost. Would I be rushing in to play the upside. No. It looks like Eli Lilly fell in sympathy. Can you play Eli Lilly for a bounce back up? Look at it's chart. It's wild. Here is it's thirty day chart. Knowing that Novonordisk crashed yesterday and knowing that Eli Lilly took a slight hit also creates an opportunity. Novonordish woes are not Eli Lilly woes. Here is how Eli Lilly is trading in the premarkets this morning. It's up ten dollars. Options can be used as a vehicle to make money on causal relationships. Now for one caveat. Playing options on stocks in the $750.00 price range is next to impossible. Why? Well the premiums are crazy expensive. Here is an example of how one series of it's the Calls is traded on the opening. At the end of the da...
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Boeing Calls Going Into a Friday Morning After dropping $4.77 on a Thursday.

I tracked the action on the 190 Boing Calls all week and watched the stock surge on Monday and Tuesday. Read my recent blogs. I cautioned that the action could change direction mid-week. It did. Trading Monday and Tuesday Calls... that seemed to work but on a Wednesday they all lost speed. Here now is it's one, five and thirty day charts.
Note it flirted with the $199.50 range. Now look at this chart. It helps to create a different spin on things.
It's bouncing back up and look at how the 210 Calls we have being watching all week closed out the day. They closed at $2.08.
Is $2.08 a good price? Well consider this. These same Calls closed the day before at $9.75. Yes Boeing can bounce big if and when it decides to bounce. Are the Call options now playable with only one day to go? Given all that has recently happened I would say STAY AWAY. Why tie up money hoping for a one day blip? The charts now show that it could go either way. Looking for rebounds on a falling stock on a Friday morning is to rich an exercise for most traders. Now for a premarket opening news release.
Boeing is soon going to have a quarterly earnings report coming out. News like this is an unwelcome suprise.

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