What To Focus On - Part Two

My blog of November 27th was entitled "What to Focus On". Please read it. This week we are feeling a bit of a hangover. Last's weeks triple witching event is over. Stocks that were forced to contract in price to sqeeze out spectatate positions on them are now free to resume there old trading patterns. This Monday morning at 10:20 a.m. the Djia is up 301 points. There are also losers. So now what? Mark on your calendar exactly three months down the road how the markets traded on the first morning after one of these triple witching events and use this same logic to catch the upside on the next "hangeover" day like this. How do you pick the winners? Find a few stocks that have enjoyed a recent upswing and play them to pop on the first trading session after one of these events. This blog is just an observation.

Boeing. Trouble Where Trouble Shouldn't Be.

  Look at it's 30 day, 5 day and Y.T.D charts. Why does the stock keep falling? The company has a backlog of new orders. Is the company getting so big that it can't manage all of its moving parts? It's so confusing. It's most recent quarterly report was great.

The scary part is that as the stock falls there doesn't seem to be any support levels. That's what makes thinking about trying to play them so difficult. That's why the volume of trading in them is next to zero. Well yesterday it was zero in two series I am watching. Not shown was surge in trading volumes on Boeing in the final few minutes of trade yesterday. In a way that was a tip-off as to the possibilities that the stock might rally on the opening on the following day. Here now are the closing prices of the 187.50 Calls on Boeing that expire this Friday and the following Friday. Remember the numbers $283.00 and $450.00.
Now let's look at how they are trading ten minutes after the opening bell on Oct.3th as the markets opened lower.
The near term Calls jumped from $2.83 to $4.67 and next next week Calls jumped from $450.00 to $620.00. Timing is everything. ** The DJI ended up closing the day down 430.97 points or down 1.29% Here is how the short term Calls we talked about closed the day and a look at Boeing's one day chart.
Writing blogs about Call option trades on down days in the market is not the norm.


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