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Drone Stocks On A Really Bad Day

I did the math. The average one day drop on Friday on these five drone stocks was 13.93%. The D.J.I.A index on that same day was down almost 600 points. I don't play options on any of the stocks in this sector of the market. $Unusual Machines the most expensive of the six dropped down the most at 18.36% It now trades at $26.37. It has weekly options on it. Here are it's thirty and five day charts. What a nice run upwards it had last month. ... Now this. A look at how one series of it's Call options closed out the day. I see something I don't like. It's the small open interest numbers. That to me means poor liquidity whenever it comes time to execute a trade. That plus after such a big recent run upwards you would expect to see higher volumes of option trades. I have often talked about how I like trading $Walmart options because the bids and asks are so tight with instant fills. What about the other mentioned drone stocks on this list? Are they more playable? Let...
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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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