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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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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.

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