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Ford Motor Company "Calls".

The one week chart tells the entire story. A thirty day chart adds more detail. Moves this large seldom happen over such compressed periods of time. Look at how these two series of Call options traded on Friday. Back on May 6th I did a blog called "Ford Motor Company Calls On The Week" and in that blog I showed this chart. Back then it was still the same story. Also of note is the fact that Ford is not doing particularly well in their quest to churn out more vehicles. I think this stock will now take a breather. Anyone playing thirty day options on Ford during this time period will be up like three or four times on their initial investment. Naysayers take note. Opportunities do happen. Traders are even finding value in 2028 Ford option Calls! Now Hertz. Might car rentals pick up in the next month as summer months approaches? Yes gas prices are up however summer is when many people take vacations and want to hit the road. Flying is now getting expensive. Renting a car is...
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Why Exxon Options Are Changing The Game Of Option Trading

At least it is now in this current market environment. Look at it's one day chart today. Remember, options trading on it are set up in one dollar intervals. Can you see how it jumped up on the opening?
Now let me show you four ways traders could have made money trading this stock today. 1&2) A double happened right off the bat. Buy the 116 Calls at 9:30 a.m. and sell them at 10.00 a.m.. Or wait until 1:45 p.m. That would have also worked. 3&4) Buy the 117 Puts at 10:00 a.m. and sell them at 11:00. a.m. Or buy the 117 Puts at 1:50 p.m. and sell them at 3:55 p.m. Is it really possible to make three or four meaningful successful option trades on one stock in one day? I would say yes and in this case it helped that a double happened in the very first thirty minutes of trading. Sometimes the charts don't look like this. Let me give you this example from the opening of the trading session last Friday. From watching Exxon charts daily you will see a pattern of the stock having some of it's biggest moves in the first twenty or so minutes of trading.
Now this, let me show you how the 116 series of Calls that expire this Friday traded on the day. Nothing really crazy but they can sometimes move like 30% in price in a very short period of time.
Is there a secret to playing these options? It has to be a self learning process. What I have just illustrated is proof that what I have just talked about is real. Over the next couple of days I will hone in on more of this action. Why do so few option players play these options? I don't know however I could ask the same question about why so few traders trade Caterpillar or Deere options. Exxon is at a great price point which allows these options set up in one dollar increments to swing. ********** Look at this past five day chart on Exxon. Staying in option positions overnight is a very high risk. Playing the interday moves on Exxon requires a lot of babysitting.
To be continued.

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