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Step Down Charts And Short Term Options. Nio

Here is a classic "step-down-chart" with one minute of daytime trading life left in them before the markets close at 4:00 p.m.. The stock is Nio. ... This printout of "in-the-money" Call option also shows one minute of trading life in them before the market closes. It's Tuesday and these Calls expire this coming Friday. You are purchasing three days of market trading life. To purchase one thousand shares of this stock would cost you $5,750.00. To purchase options that control the price movement of one thousad shares of this stock for three trading sessions would cost you $370.00. ( Ten contracts at $.37 each). These Calls are also currently $250.00 "in-the-money" which means if the stock totally goes flat for the next three days your options will still have that amount of intrinsic value left in them. Now think about this. Many option accounts in the U.S. enjoy free option trading and there are discount brokers in Canada who can save you money. A fl...
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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 however I will provide one further example, the 220 series of Calls.
Image getting in somewhere around the four dollar per contract price and watching it float up in price for the rest of the trading session! Last week the DJIA index shed 339 points. I struggled all week with my blogs on Pfizer, Netflix and Walmart. I was caught up in the drudgery of watching 10 and 15 dollar soon to be expiring "one-week-options" looking for home runs which never ended up happened. After experiencing what happened on Friday those efforts seem misaligned with what is happening in the big picture. So be it. Option trading is not everyone's cup of tea. Learn to find the best trading opportunities. Boeing was up $11.33 on the week.

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