Featured

Mid Week Reversals On Boeing. Is Smart Money Buying The 210 Calls Just before The Close?

I like Wednesdays for mid week reversals. This week is more difficult than usual because the U.S. is at war. These aren't normal markets with the projectory being down. So here is Boeing's morning chart at 10:26 a.m. Remember the first hour of trading and the last hour of trading have the highest volumes of trading. Now two series of it's Call options. Notice the interest in the "at-money" Call options as compared to the "out-of-the-money". Call options. Daytraders are looking at "in-and-out" situations. Now this, a look at the movement one hour later. Boeing continues to go down. I have also added a look at the 205 series of Calls. They are all sliding down. .... Is there now at 11.45 a.m. an uptick? Now at 12:03 p.m. Things are stalling out again. What does Chat GPT say about this situation? All three series of these Calls are taking a beating. Now this at 12:25 p.m. Now this at 1:30 p.m. Now it's readings at the end on the day...
Post a Comment

Boing Going Into A Friday

Let's start with the late Thursday afternoon activity.
This chart shows the daily trading activity up until 3:42 p.m.. The one bump upwards today augurs well for tomorrow's potential move. Yet then again that is just a random thought.
Now let's look at how they closed the day on Thursday and how much more trading happened in them between 3:42 p.m. and 4:00 p.m. 171 more contracts were added just prior to the closing bell.
Let's watch the action on the opening. Here is Boeing's now current five day chart as of the close of Thursday.
* Boeing jumps overnight..
Here, shown below around 9:00 a.m. is how the stock was trading in the morning premarkets. It was up about $1.50. What does that make these options worth in the premarket? $2.10 plus $1.50 or $360.00? The answer as you will soon see in not quite. In premarket trading there is always some slippage which should be factored in.
Now let's skip ahead to the Friday 3:00 p.m.the deadine when retail option traders must liquidate their "last-day" expiring options. These number might suprise you.
Boeing disappoints. Now this, a Friday afternoon summary at 3:00 p.m. of how the 215 Calls where trading at, plus it's then current one day chart. The high on the day for these 215 Calls happened in the first few minutes of market trading.The high was $3.15.
........................
Was this blog a waste of time to read? Not really, consider these points. 1) Look at the low on the 215 Calls on Thursday. They traded interday as low as $1.26. Call option players had the opportunity to make money trading them also on that day. 2) If you see a stock trading $1.50 higher in premarket trading you should realize you can get out of them, even "at-market" and walk away with a win. 3) Use this example of this $1.50 price gap at 9:00 a.m. to gauge what price you should submit with a premarket sell ticket if you decide to sell. As one gets closer to the market's opening these upward premarket gaps often get whittled down. 4) As mentioned in previous blogs you will sometimes see stocks trading like $4.00 dollars more in the premarkets, only then see them trading relatively flat on the opening. Keep your eyes on the Call options on these stocks to see if start to rebound back up again in the event of any strenght coming into the markets. One final thought. Some option traders get annoyed to sell out in the premarkets at a modest profit, only then to watch the stock they just sold their Calls out of rally ten or fifteen dollars on the day. You can't have you cake and eat it. *Now this, the 215 series of Puts on the day. The chart below in red better explains this action.
Buying Puts just after the early strength on the opening and getting out with a profit about an hour later was a different way to play this same situation.

Comments

Post a Comment

Popular posts from this blog

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

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