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Trumph Picks A Friday To Change The Rules.

This is kind of dirty pool. So the stock and options jumped on this news. Did Trumph's cronies get in on this action? It's difficult to tell as they could have got in a few days or a week ago and they could have bought Call options with longer term expiracy dates. Or his stockbroker cronies could have bought the stock to also profit in this gain. Certainly the authors formulating these policy changes were part of this action. In all fairness I can't prove that insiders profited from this Friday event. Yet here is the thing. Releasing this kind of news on a Monday or Tuesday would mitigate this kind of an event from being as impactful as it potentially could be. Option premiums shrink in value the closer you get to their expiracy dates. Lawmakers know this. They should know better than to allow this to happen. No government policy changes that will directly effect the stock market should be allowed on the trading days of the week when the majority of short term Call and P...
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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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