Another name for this blog could be "Boeing On The Day After One Big Crash". If you recall Boeing had earnings come out yesterday and the stock jumped on the opening and then sank as the day progressed. Boeing is struggling to get itself back upwards after a couple of years of brutal earnings reports. Here now is its five day chart as of the close on Wednesday. It's earning report came out on Tuesday July 29th.
Now it's one day chart on July 30th which is also the last day of the five day chart shown above.
So one question to now rehash is how do we explain Boeing jumping up in price within seconds of the market opening after it earnings report came out? Look at the actual first few minutes of trading. Here is a chart below showing this action.
Boeing jumped up and then sold off quickly. In the late afternoon the stock took a grubbing.
That's what the chart below shows.
Can you feel the panic in the air as the afternoon dragged on? Traders where happy to see the day come to an end. The overnight break allowed for change in sentiment and resulted with buyers jumping in on the opening with a bottom fishing mentality. The stock surged upwards five dollars, to a level still ten dollars below it's previous days high. Look at the chart below to see how the Calls jumped up at the start of the day.
My point is that Boeing came back to life on the morning after the day of the big fall. Sure it later cooled off (and the Puts kicked back to life). Smart traders getting in about ten minutes after the opening enjoyed a nice thirty minute ride. It was all in the charts. Boeing as of late haas created many playable option opportunities.
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