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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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Last Week I Said I Don't Like Purchasing One Week Options On Tuesday (Options with Only Three Day Trading Life Left)

Let's take four high priced stocks on a Tuesday at the close and track their "slightly-out-of-money", last few days to expiracy Calls. My take on things is that Tuesday options which expire on Friday are not the smartest of things to be buying. Let's follow their advancements into the next trading session. 1) Costco.
2) Deere
3) Eli Lilly
4) Tesla
Let's see what happened. First, here is how the D.J.I.A traded on the day.
1) Costco like the markets was flat on the day. The Calls lost 19% of their value.
2) Deere was down just a fraction. It's Calls were also down 19%.
So here is my thing. With short term (this week) options the option premiums drop about 20% a day in value in the first half of the week. It's an opportunity cost and unless you have a specific reason to be holding option contracts overnight I say just stay away. 3) Eli Lilly. Here is where things get interesting. The stock was up $2.09 and the options traded down! What's that all about? Well it's the 20% slippage in a day issue I keep mentioning.
4) Tesla. It took a jump of $5.26 to move the options up $.15 or not enough to make any profits after paying commissions. What a soboring thought.
Trade anyway you like. I don't like Tuesday's option action on short term options. Six month and one year out options are a different thing. Buy and sell these longer term options on whatever day you like. I just don't like playing Tuesday options looking for a three day hold.

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