Featured

Twenty Four Cent Boeing Calls On A Friday Morning With A Rally On The Day of Over 400 Points.

Boeing is one stock you can mess around with on Friday mornings. It can move like $5.00 in one day and it's last day to expiring Calls and Puts often pay off big time. Here I am this morning looking at it's five chart. I like the fact it opened stronger and then came off. Look at these two "out-of-the-money" series of Calls that expire today. It's a gamble that requires Boeing to go up. That's why them are priced so cheap. A lot can happen in the next five hours of trading. Look at how it was trading at a higher price on the previous day. Notice the 60 and 62 percent drops in value on these "out-of-the-money Calls" in the first eight minutes of trading. Now this. Boeing continues to stall out. Now let's jump forward to the 2:50 p.m. time period. The deadline to get out is 3:00 p.m. ... So what is the takeaway? A strong market helped the outcome. The $.24 cent options hit a high of $.79 and the $.55 options we first looked at jumped as high a...
Post a Comment

Option Trading Strategies To Avoid.

Ford Call Options on a Monday morning that expire at the end of this week.
Had you bought the Calls on it on Friday morning that expired that afternoon you would have made out very well. Here is what Ai says.
Now this, the 12 series of Calls options on a Monday morning that expire at the end of the week. They took a slight dip.
Here is it's Monday morning chart.
Here is a look at the same options twenty one minutes later. Traders have bought in on this dip.
Is this trading strategy, buying this weeks Calls on a Monday morning on a stock hitting a fifty-two week high a prudent thing to be doing? Or could this be a question of coming to the party to late? This is the concern. Why not purchase instead "in-the-money-Calls" with one month's trading life in them still to go? That would be a safer strategy. Their next earnings report comes out on October 27th.
Here is how other stocks are trading. It's a mixed bag.
So now it becomes a waiting game and this is one of the reasons why I called this blog "Option Trading Strategies To Avoid". It's no fun getting stuck in waiting games like this, an exercise I sometimes refer to as "watching paint dry". Let's see what happens next. Now a noon hour update.
It's chart is starting to look perky. Here it is at 2:15 p.m. The options are not doing very much. Five day out Options take time to turn around. They are not the most exciting of options to play.
Now it's time to get out.
....
Now remember the one month series of Call options we showed back at 10:15 a.m. trading at $.96 Here they are now at 3:03 p.m. trading at $1.20. That's not a bad gain for a morning hold.
Why do I say "get out?" Make a quick profit and just say thank you. A stock in this price range hitting a fifty two week high does attract attention. Playing these Calls was an exercise in getting a free ride at a hot time. Here is it's one year chart.
Last Friday is when the real action happened. Ford options for longer periods of times can be at times somewhat discouraging to play.

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

News on Polestar , Lucid (Trading After A Reverse Stock Split) Plus Ford News And Vinfast

Image
Look at the one year chart on Polester. Now it's one month chart. What's going on? It's confusing. It was down $.36 cents on the week. If you want you can spend $.20 or $.25 on Puts and hope that the company goes under in the next five or six months. They recently raised more money by releasing more shares so it's running out of options. You can't run at a loss forever and this news will most likely scare off potential new car buyers. This actually is a low number of outstanding Put options. The consensus seems to be that it is not game over yet. Lucid started trading this week on a "one-for-ten" reverse stock split. Here is its one week chart. It was down $1.39 on the week. It's also going to struggle. Both of these stocks have challenges ahead. On a more positive note here is a chart that looks kind of perky. Ford on the week. The stock was down $.03 cents on the week and it was the 3th highest in share volume trading on the NYSE. It appears...
Read more