Why Not To Buy Not Rivian Calls With Two Days to Go?

It's obvious right? If you mess up and the stock opens the wrong way you only have one day for a rebound. Why put yourself in that position? Others might be in the camp of saying why not go for a fifty percent rebound on Thurday's morning opening. The stock sold of on Wednesday on very little volume. A morning pop is possible. The stock has being strong as of late. Here is it's five day chart. Now this, the seventeen series of Calls that expires in two days. They do look cheap after hitting a high of $1.55 on the day. If we look at a 30 day chart we will see that the stock is still in an uptrend. Why not look at the Call options one and two weeks out? Here are the seventeen series of Calls one and two weeks out They would be much safer to play and I will check in on these ones at a later date. So what happened on the Thursday opening? Let's switch gears for a moment and look at how Roku, a much higher priced stock opened and look at how their Call options moved.

Boeing Down $20.00 or 8.03% On A Monday Morning

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 risk. Playing this game is not the space you want to be in. Now Wednesday's action. Notice where the 230 seies of Calls closed? Can you see how it was best you just stayed away? What happens tomorrow is anyone's guess after having inflicting a few days of downward pain.
Here is how the stock went up $2.00 in one day and the Call options didn't do anything. This is because the remaining life of the option was shortened. Lets now look back to the end of the trading session on Monday after the crash. Only 122 contracts were open at the end of the day after a wild day of trading. Traders know the second day after a crash can be another bad day as people slow to reacting to bad news will be slow in getting out. Look at what is happening to the open interest numbers at the end of day on Tuesday and Wednesday (shown above) as more trader's hope for a rebound. Once again this could be a trap. It's best just to stay away, even if this advice proves to be a bad call. Why bet on something with two days to go? To be continued. Thursday. No rebound. Look at how theses Calls got crushed. (This time I am showing a series of Calls with striking price five dollars higher.They really got crushed).
** Friday morning Jan 12th. Anything could still happen. Here is an early morning reading on the Boeing 220 Calls that expire today. These are a series priced ten dollars lower than the series of Calls we first started watching and the ones that would benefit the most from any kind of rebound.
Notice the open interest and the volume of trades are next to nothing. Option traders are still not willing buy into this as being as being a point of reversal. These Calls also ended up expiring worthless. Yes option trading is a wild and speculative game however option traders in this case are exercising some caution. That's a good thing. Here now is how it traded out the week. It dropped again on Friday.
Boeing was down $31.30 on the week and regulators grounded the 737MAX. ***When did Boeing come back up? Here is the answer. It jumped $8.55 in one day nine calendar days later on a Wednesday.


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