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.

Can You Buy Boeing Calls For a Morning Turnaround?

Here what the DJI is doing at 10:00 a.m. It's up a touch on the opening. Yet Boeing is down. What's that all about?.
Here is what Boeing is doing. Would you jump into Calls now to try and play the upside?
Here now is the cost of an $187.50 Call that expires on Friday. It's Wednesday and the week is only half over. What might the short term options that expire on Boeing on Friday do? The minute to minute chart looks like the stock might be turning upwards.
Boeing can sometimes jump five dollars in one day, not usually however on days when it moves down three dollars in the first half hour of trading so this isn't the brightest of trades to be making. It's a trade looking for a slight rebound, maybe to get into and out of by lunchtime. So what to do? Let's do the smallest of trades. Let's just purchase just one slightly "out-of-the-money" Call option as an experiment. Here is what that would look like. One Call option purchase at 9:37 a.m. for $100.00. I am not trying to encourage novice investors to trade like this however I am trying to point out the opportunties that are available. Let's see what happens. Here now is a printout of the one option I purchased and the chart of how the stock traded on the day.
So things chugged along nicely up until noon and add upwards again until about 2:00 or 3:00 p.m. Look at where I got out. If you look at the chart you will see that I was lucky to get out when I did. I got out at 2:59 p.m. at $1.62 .
So how relevant is this blog? That is something I can't answer. Look at what happened today Thursday May 23th to Boeing, the day after reporting this Boeing trade. The D.J.I dropped over 600 points.
When things like this happen it makes you rethink the entire process of wanting to speculate in options. It puts into perspective the importance of watching the markets on a "hour-to-hour" basis to better understand which way the markets are going. If you are watching the trading activities of six car companies on one screen or six medical companies or whatever it is you happen to be following you must be on top of these minute to minute trends to help validate your intuitive judgement. The scary part is what happens when you then read one of these Dow Jones flash news reports. Reports like this often make you realize how little you actually know about what companies like Boeing, Telsa, Ford, Caterpillar, Moderna and Caterpillar are up to. Yes, you can play Boeing to go up after it drops three dollars on the opening. It is said that our minds can be blind to the obvious, and we are also blind to our blindness.


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