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How Option Makers "Close The Door" On Afternoon Last Day Option Trading"

This is something which affects retail option traders which I have never really paid much attention to before. Option makers steer option traders away from chasing the option market between 1:00 p.m. to 3:00 p.m. on "last-day-Friday-afternoon-options". It's particularly noticable on certain stocks like Exxon. I came apon this after writing a blog about trading friday morning one day Call options on Exxon. Look at the "bid-and-ask" on this series of Calls on Exxon at 1:11.p.m. Look at how wide the spread is. Sixty one cents! That's crazy wide and if your stuck in a postion that you want to get out of at a fair price well good luck. Placing in a sell ticket by spliting the difference between the bid and ask would probably cause the bid to drop. This would force you to lower your asking price once again. In other words the liquidity is not there. This is in spite of it's mornings option trading being brisk. In all fairness there may be other reasons for t...
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So Boeing Is Down Like $8.00 On The Day

It's a Thursday at 3:00 p.m. Boeing is down.
Two things have happened. The DJIA is down and Boeing had some bad news.
Would now (3:10 p.m.) be a good time to play it for the upside with a Call option that expires tomorrow or one that expires at the end of next week? Here is how they are trading.
............
My thoughts. Some people like playing one day Boeing Calls with an entry point being at 3:59:96 p.m. on a Thursday afternoon. I would feel more comfortable playing them like that on a good day that Boeing is going sideways or slightly up. That didn't happen today. To me, next weeks Calls or Calls two weeks out are a better way to go. I don't really think that the news on it today I mentioned was all that significant. Boeing can't build things fast enough. Let's see what happens on today's closing and let's watch them tomorrow. Now it's one day chart at 3:20 p.m.
There was no rally on the close of the day.
To be continued. On a scale of 1 to 10 I give tomorrows outcome about 3 out of a 10. Now a Friday morning update.
It's Boeing and it looks like there is not enough enthusiasm to have a good day. Now a Friday noon update.
A lesson learned. When a stock drops $8.00 in one day on bad news and it's Boeing walk away.

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