Featured

Boeing Got Messed Up In It's Earning Report And Looking For Thursday Rebounds

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 could turn around. Might this be an opportunity to consider? Shuld you...
Post a Comment

Boeing Calls Again. The Day After It's Earnings Release.

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.

Comments

Post a Comment

Popular posts from this blog

A Fireside Chat - One Year Options and Thirty Day Options. Which is Better?

Image
Some say to think small, not big. Trying to play Disney options is thinking big. It is a stock slightly out of favor. If we start with it's a three year chart, we will see it is down by about 50% over that period of time. Now it's one year chart. If the stock can break 110 in early 2024 the sky is the limit. It does have a lot of moving parts so anything could happen. Look at these Calls options one year out. One year in options buys a lot of time.They look reasonable. If the stock ever inched up to the $105.00 price level in the three or four months these options would jump up in price by about 50%. Even more if they had really good news. Yet it's the "what-if" aspect of the equation that castes such a trade in doubt. "What if" stories just don't cut it. There are to many variables in play. Then again, why are we even thinking of long-term Call options after a December's rally? Let's switch gears. If consumers are out spending for X-ma...
Read more

Another Blog On "Vinfast"

Image
There is so much to read about this companies history online. Do your own homework. Their success is not dependent on what ends up happening with their sales in North America. They are nimble. There are plenty of auto factories all over the world now for sale they can acquire. They have dabbled in Australia. Having access to money to keep going doesn't seem to be their problem. Rivian also seems to enjoy this advantage. Vinfast is currently building a new plant in India which could employ thousands of people. That's an emerging new market. New relationships are being built and new investors will be coming onboard. Are option players looking at this stock? Not really if we look at these "one-month-out" Calls. What about Calls further out? What about next January? Here is a look at the three and four series of Calls. Nobody seems willing to bet Vinfast Calls. Now this. Here are two snippets taken from a blog I wrote about this stock back in early December of 2024. ...
Read more

Waiting For A Drop On The Opening On Bad News - Eli Lilly

Image
Here is the bad news. The company is Eli Lilly. How bad is this news? Well look at it trading in the premarkets. So what do I think? I think the news is a setback of sorts, but not really all that bad. The stock is going to open lower, that's a given. It's like trying to play Boeing after an announcement that an airplane has crashed. So the stock is going to crash and it might have a small rebound and then it's going to slide down some more. A test of sorts will happen sometime in the afternoon. It might stock falling but then where will it go from there? The best case scenario is a recognition that investors got it all wrong and the stock ends up flat on the day. Yet there might be more of a downward dumping of the stock on the close followed by a selloff on tomorrows opening. Should option players be jumping in to play the upside on next week's Calls? That is the question. Here is a look at Boeing on the days after a crash. Day two after the crash was equally as ...
Read more