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The Boeing Crash And How Option Players React

 It's  going to take time for the dust to settle on this event.  The stock dropped on the day it happened.  This event puts option traders in uncharted territories. Do you look at the Call options on it that expire tomorrow?  Here is how one series of Call options were trading mid afternoon. Let's now look at how these same series of Calls closed out the day. One question to now be asking is why try to even being playing these options. Remember just a few weeks ago when Boeing had two straight weeks of upside movement?  Why get caught up in this turmoil now?  Let's move on. Let's now also track the Calls with the same striking price one week further out. My thoughts are it's best just to stay away. The worry of why this happened might take some time to go away. There are easier battles to play.  A Friday update. The DJAI was down. Boeing was down . The 205 series of Calls we were tracking that expire today expired worthless and here are next weeks...
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Ford Puts

The stock has had a nice five day move.  Up until today that is.

Short term options on stocks in the ten dollar range need to be purchased in multiples of ten or more because commissions are crazy expensive on options in this price range. At least they are in Canada.. Here is a look at the price of Puts yesterday on a series of Puts that will expire tomorrow.
Bid $.04 or $4.00 per contract and ask $.05 or $5.00 per contract. They actually traded down to a low of $.02 on the day. Now here is a look at them today, which is a Thursday.
Was there a catastrophe drop in the markets to make this  happen?  Not really.
Trading options on ten dollar stocks with two days to go is full of surprises. I have talked about Ford options before. I will provide an update to this blog after the markets close tomorrow which is when these Puts expire.  Ford options have good liquidity and tight spreads. They often change materially in price in a one hour period of time .I also note that Ford and Stellantis are now trading for about the same price. G.M. did a major recent buy back program and is trading at a higher price this year than last year.  The trading patterns of all three of these companies get constantly bantered around with all of these tariff  talks happenings. Now here is what happened on Friday.  First the markets were down.
Now this. Friday's trading chart and a look at how the 10.5 series of Puts closed the week.

Look at the swings in it's price. Look at Ford's one day (Friday) trading pattern. Back at noon when the price of the stock was over $10.50 the holders on these Puts might have being biting their nails. 

If your new to this game don't try trading them on Fridays.

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