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A Real Look At Ford On The Opening Yesterday.

The stock opened down and jumped at 9:31 a.m. Look at this chart. In our last blog I followed the trading pattern of it's Calls all day. Had you placed a premarket, "at-market" ticket on the 12 series of Calls your guarented fill on the opening would have reflected the drop in the stocks price in the first few seconds of the opening. Somewhere between 9:30:00 a.m. and 9:30:59 a.m. the 12 series of Calls dropped in price to $.57. Then in the first five minutes of trading they rebounded to a high on the day of $.76. "At-market", "premarket" tickets in this instance would have guaranteed that you would be part of this action. The flip side of this logic is that there were no guarentees that the stock was going to go up. The use of "at-market" tickets on stocks in this price range with four days of trading life left in them should be included in your bag of tricks. Scarier is the use of this type of order on "last-day-to-expiring" opti...
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G.M. Option Are Now A Trap Few Option Traders Want To Play

G.M. popped yesterday on an earnings report.
That puts us in "a now what" trap. Will it go up or down and what about the Calls and Puts on it that expire this week (today is Wednesday) and next week? Look at at this weeks Calls and Puts that expire in three days. The first printout below are the Calls followed by the Puts. They show only the closing prices of the previous day.
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As one would expect there are more outstanding Calls than Puts. Now a question. Would you be nervous that G.M. might sell off on the opening? Why? Well investors now have had time to digest this earnings report and fret over what might happen to the car industry in America going forward. B.Y.D. is now sending boat loads of vehicles to large ports all over the world. 6,000 new vehicles are being shipped at a time. That can't be a good omen. So to catch any action on G.M. the very best time would be in first ten minutes of today's trading. Here is how one series of it's Puts traded on the opening. In my mind this was the easiest trade on the week.
It was a case of striking when the iron was hot. Now this. Sometimes irons are slow in cooling off.
** A day two update.
The downside action has worn itself thin. G.M. is now trading in a sideways pattern. The Monday morning early selloff was a reaction based on fear. The reasons that induced this fear are now somewhat forgotten. The tail end of earning reports sometimes offer these trading opportunities.

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