The Respect That Boeing Calls 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 Thurday Boeing Call options hoping for a Friday morning "Boeing bounce". So is buying in on the stock on Friday near the close looking for a Monday morning bounce the way to go? Remember in this case on Frida,y the markets closed down well over 800 points. It would take courage to be thinking of jumping in at this point.

It helped that the DJIA was up on the day.

Yes you could say that's an expensive trade to get into for a gain that is not all that significant. The gain 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 quickly enough and the reason for the cancellations had nothing to do with the buyer not needing them. The demand is still there and growing all the time. 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 was 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.

While they are still down a chunk they have four more trading days life left in them. My point being is that "next-week-out" options while expensive can turn out in ways that suprise. Let's watch and see what ends up happening with these ones.