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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. Does it really matter what the numbers they reported where? Not really. The world still needs airplanes. 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. Look at how their was panic in the air. My point is that at 4:00 p...
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Novonordisk On Bad News

It crashed hard. Yet another chapter in it's story. It's not a company that is going to go away. They have sales in the billions of dollars.
When the dust settles the stock might gain back what it has just lost. Would I be rushing in to play the upside. No.
It looks like Eli Lilly fell in sympathy.
Can you play Eli Lilly for a bounce back up? Look at it's chart. It's wild. Here is it's thirty day chart.
Knowing that Novonordisk crashed yesterday and knowing that Eli Lilly took a slight hit also creates an opportunity. Novonordish woes are not Eli Lilly woes. Here is how Eli Lilly is trading in the premarkets this morning. It's up ten dollars.
Options can be used as a vehicle to make money on causal relationships. Now for one caveat. Playing options on stocks in the $750.00 price range is next to impossible. Why? Well the premiums are crazy expensive. Here is an example of how one series of it's the Calls is traded on the opening.
At the end of the day this gain was all lost.
When you have to shell out like $1,000 for one contract to make a 25% return for the effort and risk it is not worth it. It's better to trade options on stocks like Caterpillar, Boeing and Walmart in lower price ranges. They can be equally rewarding without such large upfront costs.

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