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Boeing Got Messed Up In It's Earning Report.

Boeing released quarterly earnings today. The stock got smoked. Now it's three month and one month charts. What was the bad news today? Could this be one of those bad news is actually good news situations? Afterall, Boeing keeps on pumping out more airplanes. The problem is they keep losing big money. That's a big problem. All I know is here is how this one series of Friday Call options are trading at the close of Wednesday's session. To me they are far to expensive. It might take some time to shake off this bad news syndrome. Now this on Thursday morning. Remember the 212.50 Calls we were looking at? They got smoked. Now with one day to go these options have popped up on the radar screen. The 205 Calls when Boeing is at $206.61. Charts like this usually end up going sideways or slightly down for the rest of the day. Here they are again 31 minutes later later. At this point in time charts like this do turn around. Might this be an opportunity to consider? Conside...
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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 205 Calls. Large selling volumes hit this stock on the opening on both days .It didn't help that everything was down. The volume of contracts traded where quite high.
Can you see the dip and rebound. Can you match that dip to the drop on Friday's chart. Shown below is a one day chart of how Boeing traded.

Imagine buying one day Calls at 10:30 a.m. and getting out two hours later? Shown is an example of how the 195 Calls traded on the day.

Did I catch any of this? No. I was busy doing something else. Traders glued to their computer screens were watching the DJIA average sell off all day which capped everyone's enthusiasm  to make crazy one trades on the upside. Yet traders who hone in on "hour -to hour"  Friday morning one day options would have witnessed this action happening. Are next week's Boeing options still promising? Maybe however I still don't like the concept of looking for rebounds on bad news situations. There are easier games to play.




**** An update a few weeks later.

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