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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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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.

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