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Exxon : Part One A Simple Story . You Decide If There Is Any Logic To This.

Here is the chart on Monday morning. Are you attracted to it?
It's Monday at 10:05 a.m.. Here is one series of Call options on Exxon to look at that expire at the end of this week.
The volume of trading on these Calls and the number of open interest contracts is relatively light. Not many traders are getting drawn into this action. Why is it down? It's an oil stock and there is going to be a hundred reasons for this current sentiment of the day. Every day the sentiment changes. Everything good for this stock and eveything bad is stirred into one big pot and the end result is refected in these constantly changing numbers. Down $3.00 in one week. That's a big number. Now here is a look at how Exxon ended up trading on the entire day.
It gets interesting. Here is how Exxon traded on the day. It dipped around 1:00 p.m.
.....
Here is how the options traded on the day.
At 3:25 p.m. they went as high as $1.30. It's Monday. Here now is how these Call options traded on the day. These options are meant to be day traded. Catch a swing and sell out and wait to do it again. Are these strategies to winning? It would be all to easy to say don't hold onto positions overnight. But that's not the case because sometimes that's when some of the best gains take place. Can we say that there is more "action" towards the end of a trading week? Well look at this five day chart showing the before and after weekend trading action. It sure had a lousy last few days. Thursday and Friday were both down days.
All I can say is expect to be suprised. Daytraders with a habit getting out before closings often end up losing out on some of the biggest gains. Trading Exxon options kind of has a Vegas feel to it and in a way are kind of a distraction. Let me show you next, Tuesday's action.
In a way I feel guilty posting this blog because it makes it look all so easy. Look at how little volume of trading there was in these option. Happy days like this are not the norm.

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