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Exxon Under The Spotlight

First it's five day chart and a look at how one series of it's Calls that expired that day (Friday) traded. They went up from their lows of the day by about nine-fold! Now let's look at it's one day chart that caused that kind of action to happen. It was a gamble because it involved an exercise of riding a Call option that was about to expire that same day. Notice it got off to a rough start before it began to take off on the upside. Our last blog on Boeing shared the same experience. What's going to happen this week? We have Trump bombing Venezuela. Given the expected volatilty to follow might this be a good opportunity to revisit last weeks blog (Dec 30th) on concept of doing an option straddle? Buy one Put and one Call on the same stock at the same time with the same expiry date and see what happens. In using this stategy (which once again in most instantaneous is a very stupid thing to do) the hope is that the stock will have a decent move in either direction ...
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Exxon. A Dropping Knife or Catching A Dropping Knife

Sometimes you see charts like this and instantaneously one's brain says "I don't like it"
. I get it.
Let's check back later in eighteen minutes to see how many new contracts are added to the count. The stock has dropped another 48 cents. It's trying to predict the bottom of the fall which becomes the million dollar question.
503 new contracts are added.
Now this. Perhaps it was a computer generated program that that purchased a block of 500 Calls. Is that a good thing or a bad thing? Well it might help us in deciding when to jump onboard. Now this at 10:51 a.m.
Tuesday in the new world of playing one week options are a good day to pull off stunts like this. ** Here is how Exxon closed the day.
The falling drop syndrome sometimes works on Exxon but not so much with other stocks.

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