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Why Tuesdays Around 11:30 A.M . Are Particularly Unattractive Times To Be Looking At Options That Expire On Friday

So here are nine examples of what the heading is alluding too. Bad times for the most part to be entering into option positions. 1) Tesla. 2) 3) 4) 5) 6) 7) 9) 8) Now the closing reading on these Calls at the end of the trading session. $6.20 is down from $8.03 on Tesla and on First Solar the Calls are $3.10 down from $3.35. Here is what the markets did on the day. So let's continue on. Now Elli Lilly and Caterpillar. Elli Lilly went from $13.40 to $15.65 and Caterpillar went from $3.95 to bid $3.95 and $4.35. Now Biogen. It went from $2.50. down to $1.45. Boeing Calls went from $2.88 to $3.70. In Biogen there were no further option trades on the day with the bid and ask going up towards the closing bell. Walmart couldn't do anything as the effect of this tariff situation is all new. When is food going to cost more? It's Calls went from $.88 dollars to $.75 dollars. Now the last one, Home Depot. $3.80 went to $4.30 So really the markets sold of or went side...
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Boeing

In previous blogs I have often mentioned how Boeing can pop after a weekend. It happened again this morning, a Monday morning. I could end the blog here and say that that's all I want to say. This time there was news.
Was there a tip off that this might happen? Here is how it closed stronger at the close on Friday. It's not much of a tip off but something.
Earnings come out in a few days.
Now it's three month chart.
. Which way is it going to trade next? That's not my point. My point is Boeing sometimes pops on Monday mornings. Most usually just take your profits on the opening and get out. Here is a look at how the $152.50 series of Calls which expire at the end of the week traded today, a Monday.
Have you sold here the top on the opening today you would have gained about 50%. The reverse is also true. If there a hint of bad news would would probably cause a loss of the same percent. Most option traders dont't like holding "out-of-the money" Call options (Boeing was up $3.98 last week and the Boeing $152.50 series of Calls we used in this example closed last week at $5.93. This would have being an expensive, high risk and short lasting trade to make. There is more to this story and lets start with this news.
Here is how the markets and these same series of Call options we looked at above traded on Wednesday Oct 23th.
To be continued.

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