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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...
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The Tempatation To be Looking At Boeing Calls On a Tuesday Morning

Here is it's five day chart.
Will the 215 level provide some support? Let's also look at it's chart as of last friday.
A drop then was in the cards. Can you see how Boeing started to come back a bit yesterday afternoon? Today it is seeking comfort in the 215 price range. Now this, a look at it's this weeks series of 215 Calls at just after 10:00 a.m. this morning.
Two things. I don't like Tuesday Call options that expire at the end of the week and I don't like options in the $3.00 price range . Why? Well one reason is that the stock would have to make a signifiant move to the upside to make these options double in price. In one of last week's blogs I talked about Exxon options quadrupling in price. Look at how that stock's price jumps around. With Exxon options each one dollar move in the correct direction would be a near double. It's option series are set up in 50 cent increments.
Now back to Boeing again, this time at 10:48 a.m.
The 215 Calls we first looked at trading at $2.96 are now at $2.36 and may be bouncing off a support level. It would take a three dollar upward move on this stock just to move it closer to a break even price. Once again, it is a Tuesday and not a day I like looking at options that expire on Friday. Now here is how these Calls traded on the day.
So something that was trading at $2.96 in the morning at 10:08 a.m. ended up closing at $315.00 at 4:00 p.m. What a big risk to make no real return. I like Wednesday options which expire in a few days more than Tuesday options. Wednesday at the close. Here now is Boeings five day chart.
Here is the kicker to this blog. If Boeing does jump tomorrow then we can say buying on Tuesday is a smart thing to do. Playing Boeing options on a Monday morning and playing them on the last two days of a trading week is a better way to go. Here is how Boeing ended up closing on thr week.
Getting in on Wednesday was the way to go.

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