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What A Week For Market Swings. This Time Boeing

My last two blogs have focused on options expiring on Mondays and Wednesdays. This blog on a Thursday deals with options that expire tomorrow on Friday. AS A GENERAL RULE PURCHASING CALLS ON A THURSDAY MORNING THAT EXPIRE THE VERY NEXT DAY IS NOT A SMART MOVE TO MAKE. We have witnessed huge daily price swings this week where profits from option trading can be made in a matter of hours. Now let's look at Boeing's morning action. Sometimes when you see charts like this and if you're coming off a streak of three or four profitable trades it's best to jump in hoping for a reversal to the upside and ask questions later. Especially when the D.J.I.A is strongly up in price as it was. I quickly looked around and couldn't find any news to account for this price drop. Trumph was in China and we later learned that there was talk of China ordering 200 more of Boeing's new airplanes. China is always going to want more airplanes. Talk like this is only talk. Now this at 9:51...
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Tesla Calls Are A Different Animal. Watch It's First Hour Of Trading On A Friday Morning

Here is Tesla's one day chart on Thursday.
Now here is how the 440 Calls and Puts closed the day on Thursday.
The 430 Call contracts cost $5.25 and the 430 Puts cost $4.97 going into Friday mornings action. In the premarkets just before the opening the stock was up almost eight dollars. You can see that in the list of auto stocks below. Then in the premarket trading around 9:28 a.m. it was only up about $5.00. An "at-the-market" ticket to purchase a Call option at 8:00 a.m. would have added another profit of about $300.00 dollars on the opening bell. There are times however when premarket moves vanish in the blink of the eye before the market actually opens. I have witnessed that happen many times before.
So what happened? Well the Calls doubled in price in the first six minutes of trading and the Puts obviously got beat up.
.......
Yes the Puts really got beat up. As a Call holder you can walk away from this strong opening and say thank you. That's what trading Tesla options is all about. You took a risk with real money and you deserve to be rewarded. Part Two. Thinking about playing the downside given the stock is up? Look at this printout of the Tesla 450 Puts which is reflective of where the stock is now trading at. It's 9:38 a.m. in the heat of the action when the stock is still surging up.
Would it be wise to think about such a move? Not really. It's still early in the trading session. Let's see what these Puts are doing 26 minutes later.
Telsa at 10:24 a.m. keeps going up.
The 440 Calls are even higher in price now.
All this action in the first hour of trading. That's Tesla. ** Had you purchased the 450 Puts for $320.00 a contract at 10:04 a.m. this morning what would have happened? Here is the answer. You can see how they traded on the chart below.
At one point in time you could have sold them for $675.00. *** Here is how the 440 Calls which closed at $5.25 on Thursday's close, traded today.
*** What is better? Selling the 440 Calls for $16.07 at $10:28 a.m. or fishing around trying to catch the top of the day price of $17.75. I think the quicker way is better.

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