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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.

Looking At Call Options at 11A.M. On A Friday

Here is what the markets are doing at 11 A.M. on a Friday morning.
Here is Nio at this time. First it's five day chart.
Now a one day chart.
Now the Call options which expire this afernoon with a six dollar striking price.
Is it crazy to be looking at these? Not really, the stock was down $.31 cents the previous day. What's next? Let's now look at the Ford Calls at 10:52 a.m.
Here is how the stock has traded over the last five days. Could is rebound in the next four hours?.
Here is how it's options are trading.
Notice that the volume of trading is greater than the open interest? Now Boeing at 10:45 a.m. This time we are looking at the price of slightly "out-of-the-money" Calls, the 212.50 series.
It did pop $8.55 cents on the previous day as shown below so could it gain more momentum today? One might think so.
*** So what happened at the end on the trading session? Nio closed at $6.06 so the Call holders who hung on got their money back. Remember at 10:55 a.m.,they where trading at bid. 04 ask .05. Ford actually rallied to $9.20 and the Calls we were watching went up to over 20 cents. Remember at 10:52 a.m. they were bid .03 ask .04.That was a nice gain.
The big winner were the 212.50 Boeing Calls with the stock closing out over $215.00. With that, the Call options closed out over $2.50 . Remember a 10:52 a.m. they were bid .41 ask .45.
It all worked simply because the market was up almost 400 points.

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