The world is politically unstable and Exxon jumped on the opening. Can you jump in and play it for the downside over the next two days? The real money was made by option traders who jumped into Call options yesterday before the close knowing that Trumph was ramping up his rhetoric on pushing around Greenland. His talking last week about getting involved in the Venezuela oil markets pushed up Exxon and Chevrions stock prices. Here are their five day charts.
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Now consider this. A bet on the Puts to make you money over the next two days puts you in the driver's seat on playing the downside. Would this be a reckless trade to make or one that shows your wisdom in calling Trumph out on his reckless path of destruction? You decide. Now this.
What this shows are how "out-of-the-money" Exxon Calls reacted to this morning's opening. What a nice return to it's call holders.. Might things cool of a bit over the next two days? Here are the Puts that expire this Friday. Would you be willing to jump in now to play the downside? It would be a play on Exxon losing the gains it made today. Just below I will show you how the indexes are now trading.
Wait. The markets are up and Exxon is up. There is really no point in buying the Puts now. Exxon might continue to go up for the rest of the day with the markets rebounding. A 3:30 p.m. perspective might be more inviting for an entry point to play the downside. Here is a 3:38 p.m. look at it's five day chart.
Now at 3:30 p.m. buy in point.
The stock might lose some steam buy the end of the day or could open lower on the opening. All I know is that today was a strong day on the markets and this morning wasn't the right time to be looking for a reversal. A one dollar drop on tomorrow's opening would do wonders for this postion. The takeaway this time is not to fight oil stocks on strong days looking for interday reversals. With oil stocks, once the momemtum sets it usually takes an overnight occurance to create a reset in the market's thinkings. That's the way I see it anyways. Here is how the Puts were trading in the last second of trading.
Here is how they closed. Ninety nine more contracts traded in the last twenty seven seconds at a slightly lower price so someone was dumping them.
Let's see what happens. Thursday morning. It worked.
Exxon can be your friend.
**** Now here is the five day Exxon chart at the end of the week on Friday morning. It continues to charge up.
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