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Twenty Four Cent Boeing Calls On A Friday Morning With A Rally On The Day of Over 400 Points.

Boeing is one stock you can mess around with on Friday mornings. It can move like $5.00 in one day and it's last day to expiring Calls and Puts often pay off big time. Here I am this morning looking at it's five chart. I like the fact it opened stronger and then came off. Look at these two "out-of-the-money" series of Calls that expire today. It's a gamble that requires Boeing to go up. That's why them are priced so cheap. A lot can happen in the next five hours of trading. Look at how it was trading at a higher price on the previous day. Notice the 60 and 62 percent drops in value on these "out-of-the-money Calls" in the first eight minutes of trading. Now this. Boeing continues to stall out. Now let's jump forward to the 2:50 p.m. time period. The deadline to get out is 3:00 p.m. ... So what is the takeaway? A strong market helped the outcome. The $.24 cent options hit a high of $.79 and the $.55 options we first looked at jumped as high a...
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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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