Deere On Earnings

Here is a look at Deere towards the end of the afternoon after an earnings report. It got beat up pretty bad. What we are now looking at is a printout of one option series which will be expiring the next day were trading towards the end of the trading session. Would now be a good time to buy into these 395 Calls and try to play tomorrow's upside? Lets look at how these options traded the next day. Can you see they hit a high of $4.65 sometime during the following day? I did two very small trades on the Friday morning bounce back. I just wanted to cover my commissions a make a touch. Remember Deere options are extremely difficult to play and with only hours to go before they expire its not bad to take a profit whenever you see one. .................. My times in were 10:14 to 10:31 a.m. and 10:59 to 11.09 a.m. I missed the elusive high of $4.65 which happened after I got out. Part Two. Going forward. Let's look at Deere's five day chart and look at how the 400 series o

The Temptation of Buying A One Day Call Option On Thursday Afternoon.

It's usually better to wait until Friday morning and then deciding which way the markets might go. Looking at purchasing one day until expiring Call or Put options on Thursday afternoon can be tempting. Thursday was a trick with Boeing only up $.02 cents on the day. Here is it's one day chart. Playing it from (9:30 a.m. until 11:00 a.m.) was the way to go. On Wednesday we referenced Boeing looking like it's old self again.What a terrible down slide as of late.
Now look at this. Focus on the chart from 1:00 p.m. unti 2:30 p.m. That period of time could have got Call option players excited. Experience also tells us that the 2:30 p.m. - 4:00 p.m. period of time is one of most dangerous times of the week to be looking at Call options that expire the next day. Now here is it's full one day chart.
From 2:30 p.m. until 4:00 p.m. it really did nothing, with no indication of would happen on the following morning. Do your own homework to see if you concur with this logic. Now Friday morning and the one day options that expire at 3:00 p.m. this afternoon.
Only 355 call contacts traded in the first five minutes of trading. Now the Puts.
Note this at 19 minutes onto the trading.
Now this. It's still early in the trading session.
What next? A look at the Puts.
Notice the wide spread between the bid and ask on the Puts. The markets are nervous knowing a two dollar swing could happen at anytime. This is the most exciting time of the week to be in these Calls and Puts. Now look at this action.
Boeing is up and the Calls surge in a very short period of time.
Notice they hit a high of $2.04? This is the payoff for watching it in agony all week. The Puts get desecrated.
Boeing fizzled out the rest of the day.
Now the chart and the markets.
Buying in on Thursday afternoon would have been a mistake. *** Did the 170 Puts we mentioned at the start of the day ever pan out? not really. Here they are now.


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