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Boeing" And "Tesla" On A Nervous Opening. Both Are Worth Watching

Boeing's chart. It's Calls that expire this Friday. A flat five minutes on the opening. Tesla, now 24 minutes into the opening is also deciding what it wants to do in this space. The Tesla Calls expire tomorrw while the Boeing Calls don't expire for four days. Here now is a look at the Tesla Calls with the same striking price which expire this Friday. They cost more than double to purchase however this printout is 25 minutes later after the stock has rebonded over $3.00. What attracts me to these two situations? First they both dropped a chunk in price on the previous day. Boeing has a cloud over it's head with rising oil prices and concerns about the debt the country is piling up on defense spending and Tesla is caught up in SpaceX coming soon news which is getting a lot of attention. It's a case of buying on the dips and discounting the possibilities of the bottom falling out of both of these stocks. Now a 10:30 a.m. look at these same Boeing and Tesla options...
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" The Respect That Boeing Options Command." Part Three

In a recent blog (on Oct 1st) I said if you bought short term Call options on Boeing on a Wednesday and earned a profit that day, just take it. I also said don't buy Thursday Boeing Call options hoping for a Friday morning "Boeing bounce". Friday option playing can be done on an hour-to-hour basis looking to go against short term rises or dips. Then there is the startegy of buying Call or Put options on the stock on Friday near the close looking for a Monday morning bounce. Most traders using this strategy are looking for an upwards bounce. Remember in this case on Friday, the markets closed down well over 800 points and the Boeing stock took a hit. It would have taken courage to be thinking of jumping in at this point.
Shown above is Boeing's five day chart showing the big drop on Friday and the rebound on Monday.
Yes you could say that it's an expensive trade to get into for a gain that is not all that significant. The gain on Monday was like 39%. (One of the reasons for Boeing getting knocked down last week was the news of a possible cancellation of some airplane orders). The truth is Boeing can't build them fast enough and the reason for the possible cancellations had nothing to do with the potential buyer not needing them. The demand is still there and still growing all the time. Tuesday was a nothing day with Boeing off $1.26. In a blog I wrote last Thursday on Boeing (Oct 9th) I suggested buying the $217.50 "one-week-out" Call options over the "one-day-out" Calls options. Friday's markets were a blood bath and the markets, as measured by the D.J.I.A index dropping 873 points. The one day to expiracy Calls which I said to avoid expired worthless. Now let's move forward. Here now is how those "one-week-out" Call options from last week where trading back then.
Here is how they ended up closing today on Monday.
While they are now still down in price by a significant amount they now have four more trading days life left in them. My point being is that "next-week-out" options, while expensive can still turn out to profitable trades. Let's continue to watch these ones. Here now is Boeing's thirty day chart.
Now Wednesday morning. The clock is ticking.
Thursday at the close is even worse.
To be continued.

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