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Do You Have To Be A Wizard To Play Exxon Mobile Options? You Decide.

Look at this chart. It's Exxon's one day trading chart of last Friday. Zoom,zoom, zoom. Here is it's five day chart. Shipping oil on the high seas is becoming more of a game of cat and mouse. Looking at the above five day chart would you want to holding this weeks 135 Calls starting the trading session on Monday morning? Here is how the 135 Calls closed the week. Now this, the premarkets on Monday morning. You can't trust these numbers. Sometimes the hype burns itself out before the markets open. At some point in this process the following news ws being assimilated. Now this. Exxon jumps on the opening but not that much and quickly gives up some of that gain. Now this. The Calls are up 25% in the first three minutes of trading. That's something but not bad if you bought in at the closing seconds of Friday's trading session. Are traders now rushing in to buy the Puts? Not really. Exxon Mobile commands respect. Now this at 9:57 a.m. Exxon is now down...
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Roku And It's 2nd Quarter Earning Report

Let's start with the time period of Thursday morning with an earning's report coming out after the closing bell. Look at how crazy expensive these three series of Call options are. They are the Roku "out-of-the-money" Call options that expire tomorrow. The volume in them is not all that crazy but if I owned the stock I would be tempted to sell the Calls against my position and hope they would expire worthless. Tomorrow is Friday August 2nd.
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Why pay so much? Why pay $4.05 for a Call with a striking price of "58" with one trading day to go in the contract? The stock would have to jump four dollars just to get your money back? Talk about stupid? Yet then again Netflix, a company also in a similiar space sometimes moves like ten dollars in one day. Here now is a look at what happened by showing tomorrow's five day chart.
Down $2.19 on the day to $53.14 with the DJIA down over 600 points.
Say goodbye to those Calls if you ever bought in. Now let's look at it's year-to-date chart.
Can you see how it dropped about $35.00 quickly on the release of it's first quarter's earnings? That's part of the reason why these Calls were so expensive. On good news it could have really popped. So what were it's second quarter earnings actually like?
It's still reporting losing money per share however their guidance is starting to look more promising. Having the markets drop over 600 points on the day (it was down even more than at one point during the day) really squashed any upside potential. The game never ends. Here now is how next weeks 53, 54 and 55 series of Calls are trading.
Pick you battle. How did things turn out four days later in a crummy market? Not good. Look at these same options. People however are now waking up to the fact that the quarterly earnings report was not all that bad. Trading options is never a walk in the park. There is still time for these Calls to suprise.
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