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Lucid. Options On $6.00 Dollar Stock With Two Days To Go Are Difficult To Trade

What do you think about this chart? It's one of those falling of a cliff charts. It's a Thursday morning and it looks like this stock is kind of in a downdraft. Look at my most recent blog on Rivian. The bad news on Lucid could be a hangover effect caused by Rivan's one day prior bad news story. It was talk about Rivian going back to the markets to raise more money even though they were starting to lose less of it. It was a good-news, bad- news story. A story which would take a few days for the markets to digest. Let's now look at two series of Lucid's Calls which expire tomorrow. We now find ourselves forty one minutes into the market's opening trading action. The 26 series of "out-of-the-money" Calls that expire tomorrow are trading last at $.03 cents. ... Now this. Now look a this small rebound twenty five minutes later. .. Here is where it gets a touch confusing. The $5.50 Calls which were once at $.22 cents are now $.30 and the $6.00 series of...
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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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