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The Trade Of The Week

Boeing Calls suprised on Friday. The stock dipped at 10:00 a.m. So did the Boeing "at-the-money" Calls at that exact time. I often talk about Boeing options, most usually in the context of purchasing one week out Call options on Boeing at 3:59:56 p.m. or 3:59:57 p.m. on Fridays "at market" looking for jump upwards on monday mornings. I also note that 10:00 a.m. as well as 12:00 a.m. are commonly periods of time in the trading sessions where reversals in stock prices can take place. This phenomena is not an illusion. In this instance, there was an opportunity to pay $20.00 per contract for one day Call options on Boeing that were expiring that day which ended up closing the day at $990.00 Your timing in doing this had to be spot on. In all fairness it is not everyday that Boeing jumps up almost 5% in one trading session. Call options on Boeing at that time which where "out-of-the-money" had even more extreme upward moves. I don't want to bore you howe...
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What $1.00 Gets You in "Two-Week-Out-Options" (One Dollar Is Really $100.00 Dollars).

I have talked about Carmax before. The stock got hit hard on a recent earnings report.
Now it's five and thirty day charts.
The stock seems range bound. I like stocks that go sideways after a slight bounce. Now look at this, a look at how other companies in the same space are trading on the day. They are all down except Carmax.
On a good day when everything is up these Calls could move upwards by 50%. (Don't take my advise ..... learn to look for opportunities like this on your own ....). Here they are at 3:56 p.m. On ten contracts the move on these Calls would have resulted in a profitable afternoon day trade.
Here is how the stock traded on the day. What a smooth afternoon Monday ride.
These are next week's out options. I wouldn't be trading options on stocks in this price range with only days to go.

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