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Step Down Charts And Short Term Options. Nio

Here is a classic "step-down-chart" with one minute of daytime trading life left in them before the markets close at 4:00 p.m.. The stock is Nio. ... This printout of "in-the-money" Call option also shows one minute of trading life in them before the market closes. It's Tuesday and these Calls expire this coming Friday. You are purchasing three days of market trading life. To purchase one thousand shares of this stock would cost you $5,750.00. To purchase options that control the price movement of one thousad shares of this stock for three trading sessions would cost you $370.00. ( Ten contracts at $.37 each). These Calls are also currently $250.00 "in-the-money" which means if the stock totally goes flat for the next three days your options will still have that amount of intrinsic value left in them. Now think about this. Many option accounts in the U.S. enjoy free option trading and there are discount brokers in Canada who can save you money. A fl...
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Boeing Calls Monday and Tuesday

Why am I hung up on writing about options on Boeing? Here is why. Here is how the markets are trading today (a Monday) minutes before the closng bell.
It's a strong upwards trading day after a 600 point drop on Friday. Now it's "one-day" trading chart.
Now here is how the Call options traded / closed on the day.
This chart in red ink shows a rebound that lasted the entire afternoon. That's the type of rebounds to look for, rebounds that are not complicated. Did Tesla sell off around 11:30 a.m.? Yes.
Many other stocks opened strong and stayed strong as the DJIA shot up 585.00 points on the day with a super strong closing. Playing Boeing options is both an exercise in trading Boeing and an exercise of trading the strenght in the overall markets. .......................................................................................................................................................................................................................................................................................... Now for part two of this blog. A look the next day, Tuesday's action. This time the DJIA was down slightly on the day.
Now here is it's one day trading chart.
Now here is how the Call options traded/ closed on the day. Interday the 220 series of Calls almost doubled in price again! This time the volume of trading in the Calls was down about 40% from the previous day as the strenght in the DJIA was somewhat mutted.
Now the trading action in the Calls during the day. It looks the same. Line this chart up with the chart on the previous day!
Let's dissect this time period into even a shorter period of time.
My point is that watching the markets is in part an exercise of looking for chart formations that you feel comfortable trading. With day trading one day charts in conjunction with five day charts is everything. That plus getting a handle on news releases. Now look at Boeing's five day chart.
What's going to happen tomorrow? I never feel comfortable going back to the well for a third time.

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