Featured

Pfizer - Five Day Options Starting On A Monday Morning.

Monday December 29th The DJIA dropped on the opening. Not a massive drop, just like 250 points. So I am looking at Pfizer again, this time to the upside. It's only down $.07. The option volume is healthy which is a good thing. If the markets rebound these options will be super sensitive to a rebound. It's only Monday and these options have all week. By waiting until the afternoon hopefully morning jitters are behind us. Now this, a look at it's five day chart. Charts are important. Now a 2:05 p.m. update. First it's current one day chart and another market update. The markets are still struggling. Now this at 2:09 p.m. Now it's final Monday closing reading. The markets never rebounded. So what next? Pfizer the following morning. These Call options are now "out-of-the-money" and are super sensitive to the stock's lastest two cent drop. Here is it's chart. The open interest in the Puts is now double what it is in the Calls. The nice things ...
Post a Comment

The Respect That Boeing Calls Command

It's noon on a Wednesday and here we are looking at Boeing Calls. These options with 2.5 days trading days life left in them now command a two dollar premium. Is it worth it? It means that the stock has to jump up two dollars in value in the next little while just to break even. Given it's recent track record of good news, it's a reasonable proposition to entertain. Here is a look at what one series of Calls are trading at.
Last week Boeing was up $5.61. So really at this point in time option traders considering this position are hoping for a rally this afternoon, tomorrow or the next day. One could argue that a slight upward move at this juncture might produce a 30% or 50% return in a few hours. Seasoned day traders are not afraid to take unexpected Wednesday afternoon profits. As we will quickly learn at the 2:32 p.m. mark this was not going to happen. Boeing's Calls were near their lows of the day.
..............
Here now is it's five day chart ten minutes later.
My point is that waiting for Wednesday afternoon rallies is generally not a good space to be in. Buying into Calls just before the close on a Wednesday gets you into a totally different reality. Now a Thursday morning update.
A look now at 12:21 p.m.
Here now is how Boeing closed out the week.
With this kind of sideways moving action it's best just to take a profit when you see one. Holding Thursday Calls going into a Friday is not a good way to play things. ++ Friday at the close options are often an interesting way to play Boeing Calls. Sometimes you are rewarded with a Monday morning pop. Here is where one series of call options on Boeing closed on October 3th. These ones are lightly traded and expensive, which are options I seldom talk about. They are "in-the-money" with five trading days to go. Any kind of an increase on Monday morning would cause these options to jump by 25%.
I would rather buy an option costing $598.00 with five days to go than one day to go.

Comments

Post a Comment

Popular posts from this blog

A Fireside Chat - One Year Options and Thirty Day Options. Which is Better?

Image
Some say to think small, not big. Trying to play Disney options is thinking big. It is a stock slightly out of favor. If we start with it's a three year chart, we will see it is down by about 50% over that period of time. Now it's one year chart. If the stock can break 110 in early 2024 the sky is the limit. It does have a lot of moving parts so anything could happen. Look at these Calls options one year out. One year in options buys a lot of time.They look reasonable. If the stock ever inched up to the $105.00 price level in the three or four months these options would jump up in price by about 50%. Even more if they had really good news. Yet it's the "what-if" aspect of the equation that castes such a trade in doubt. "What if" stories just don't cut it. There are to many variables in play. Then again, why are we even thinking of long-term Call options after a December's rally? Let's switch gears. If consumers are out spending for X-ma...
Read more

Waiting For A Drop On The Opening On Bad News - Eli Lilly

Image
Here is the bad news. The company is Eli Lilly. How bad is this news? Well look at it trading in the premarkets. So what do I think? I think the news is a setback of sorts, but not really all that bad. The stock is going to open lower, that's a given. It's like trying to play Boeing after an announcement that an airplane has crashed. So the stock is going to crash and it might have a small rebound and then it's going to slide down some more. A test of sorts will happen sometime in the afternoon. It might stock falling but then where will it go from there? The best case scenario is a recognition that investors got it all wrong and the stock ends up flat on the day. Yet there might be more of a downward dumping of the stock on the close followed by a selloff on tomorrows opening. Should option players be jumping in to play the upside on next week's Calls? That is the question. Here is a look at Boeing on the days after a crash. Day two after the crash was equally as ...
Read more

Another Blog On "Vinfast"

Image
There is so much to read about this companies history online. Do your own homework. Their success is not dependent on what ends up happening with their sales in North America. They are nimble. There are plenty of auto factories all over the world now for sale they can acquire. They have dabbled in Australia. Having access to money to keep going doesn't seem to be their problem. Rivian also seems to enjoy this advantage. Vinfast is currently building a new plant in India which could employ thousands of people. That's an emerging new market. New relationships are being built and new investors will be coming onboard. Are option players looking at this stock? Not really if we look at these "one-month-out" Calls. What about Calls further out? What about next January? Here is a look at the three and four series of Calls. Nobody seems willing to bet Vinfast Calls. Now this. Here are two snippets taken from a blog I wrote about this stock back in early December of 2024. ...
Read more