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Twenty Four Cent Boeing Calls On A Friday Morning With A Rally On The Day of Over 400 Points.

Boeing is one stock you can mess around with on Friday mornings. It can move like $5.00 in one day and it's last day to expiring Calls and Puts often pay off big time. Here I am this morning looking at it's five chart. I like the fact it opened stronger and then came off. Look at these two "out-of-the-money" series of Calls that expire today. It's a gamble that requires Boeing to go up. That's why them are priced so cheap. A lot can happen in the next five hours of trading. Look at how it was trading at a higher price on the previous day. Notice the 60 and 62 percent drops in value on these "out-of-the-money Calls" in the first eight minutes of trading. Now this. Boeing continues to stall out. Now let's jump forward to the 2:50 p.m. time period. The deadline to get out is 3:00 p.m. ... So what is the takeaway? A strong market helped the outcome. The $.24 cent options hit a high of $.79 and the $.55 options we first looked at jumped as high a...
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Mid Week Reversals On Short Term Options. A Topic Seldom Looked At.

As a writer if you get things wrong you quicky lose all creditability. I understand that. In a blog on Pfizer last week I looked at an entire week of it's trading activities of it's series of 25.00 Calls. The exercise was exhausting. This week I am only going to pinpoint one day of it's trading.
Today is Wednesday. Shown above is one series of Call options on Pfizer which only have two remaining days of trading life left in them before they expire. Most option traders dislike options on stocks in this price range for a number of reasons. Twenty five dollar stocks can wander aimlessly for extended periods of time. I get that. Then why would I be stupid enough to be looking at these Calls at this particular period of time? Two reasons. First, there is the chance Pfizer might rebound on the opening. Why? Well the DJIA closed the day down just shy of 500 points. Trumph does strange things which causes market swings. A rebound upwards could happen tomorrow morning for no reason if a more normal market returns. The second reason that Wednesdays are the one day of the susceptible to mid week reversal. Ai can explain this better. Type in "susceptible to mid-week reversal". That's what I would be looking for in this situation. Now this, it's one day chart.
Look now at the volume of contracts opened in the last 15 minutes of trading. Only 26. I don't understand why more traders aren't looking for a next morning bounce. Now let's move on to the following day and look at this 10:20 a.m. readout.
The $30 cent Calls (thirty dollars) are now $54 (fifty four dollars). That's the bounce I was looking for. Take your money and run before a sense of normalcy returns. Now this.
It's closing reading. It fell back close to where it was trading on the previous day.
This is an excellent example of a mid week reversal. Now on to other things.

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