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Option Trading Strategies To Avoid.

Ford Call Options on A Monday morning that expire at the end of the week. Had you bought the Calls on it on Friday morning that expired that afternoon you would have made out very well. Here is what Ai says. Now this, the 12 series of Calls options on a Monday morning that expire at the end of the week. They took a slight dip. Here is it's Monday morning chart. Here is a look at the same options twenty one minutes later. Traders have bought in on this dip. Is this trading strategy, buying this weeks Calls on a Monday morning on a stock hitting a fifty-two week high a prudent thing to be doing? Is this a question of coming to the party to late? This is the concern. Why not purchase instead "in-the-money-Calls" with one month's trading life in them to go? That would be a safer strategy. Their next earnings report comes out on October 27th. Here is how other stocks are trading. It's a mixed bag. So now it becomes a waiting game and this is why I called this ...
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Boeing Has Gotten Expensive Lately

 It might start making money again. Here is it's five day cart.

On Monday May 22th  the markets jumped up over 800 points and Boeing was down. Monday was May 27th.  Here is Thursdays chart.
If you look at the chart you can see some traders got in on the opening on Call options near the previous day's closing price. Then these Calls jumped up explosively on the day.
Why it happened. Well their CEO made a speech. He stated that the company is making a come back. Why the stock didn't open a few dollars higher the following morning rather that having a limp opening is something I don't know.

Is it to late to play it for a continued rebound tomorrow, a Friday? Here is how the $202.50 Calls closed the day which is a Thursday. The "open interest" number is fairly high.
Now the $207.50 Calls which are just a touch "out-of-the-money" Calls.
It was good news that caused this stock to go up. If the market opens stronger these "one-day-out" options could open stronger. Here also is a look at the slightly just "out-of-the-money" Puts. The Puts lost 80% of their value on the day as the stock was up $6.68 on the day.
What's my take on things? If Boeing was up only a dollar or two on Thursday these one day Calls would be interesting. Given it's $6.68 price  increase on the day it would seem a stretch to have the stock jump even higher the following morning. I wouldn't be betting on it going up on the day, nor betting on the Call going down. With Thursday's unusual action it is now to difficult to call. Here now is it's five and  thirty day charts. I would just stay away.

Let's see what Friday's action brings. here is how these options closed the week.

The last chart shows how the Calls traded on the day. Yes the Calls and Puts are  tradable  intraday however that's another story which calls for some devotion.
 

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