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Looking For Options That Can Have Big Moves On A Near Regular Basis. This Might Help.

Since the start of the year I have done 9 blogs on Tesla, 8 blogs on Caterpillar, 6 blogs on Eli Lilly, 5 blogs on Exxon and less on others. Guess which stock fascinates me the most for option trading? The answer is Exxon and I want to share with you one of the most dramatic one day option price swings I have witnessed this year. It affected as you might guess "last-day-to-expiring options'. It happened yesterday on February 20th which was a Friday and it happened with it's one day Put options. What do I know about the world energy situation and the complexities of oil tankers circling the world? Not much. I do have two good friends in the oil business who don't know each other but they both say the same thing. They don't talk about business that much but say things are good when the price of oil is down and say things are bad when the price of oil is up. They both seem to work like six months a year overseas and they both are avid soccer fans. They bet on soccer games. I don't know the players or which countries are better so I don't gamble on them. I like to stick with things I know. So what has caught my attention with Exxon? Let me first better set the stage. 1) First a chart of how Exxon traded on the week.
Are you able to see it jump on Wednesday and move up in price and then come off in price on Thursday and then sell off further on Friday. Looking at the charts, wasn't some of Friday's sell off somewhat inevitable? In the first printout below it shows the 150 series of Exxon Puts. A $41.00 dollar initial investment at the very start of the day could have resulted in $340.00 selling price if you caught it perfectly. 2) The human psychology part of this equation. Yes you might say movements like this don't happen very often and the act of following Exxon on an hour-to-hour basis takes to much time. I get it. Option trading isn't for everyone. You're going to say holly cow when you see what happened.
Here now are the 149 Puts. This series is a higher risk because they started the day being "out-of-money".
An early morning 149 Put increased in value from $11.00 per contract to a high of $239.00 in 3.5 hours. Imagine if you purchasesd 50 of them? What is next? The 147.00 series of Puts. You would have to be crazy to purchase something like this so far "out-of the money" with only hours of trading life left in them. Now watch this action.
They didn't really go from $1.00 to $72.00 dollars because the stock actually closed above $147.00. Also they did however close at $6.00 per contract on the previous day as you can see on this printout. A $6.00 contract did however charge up to $72.00 a contract around 1:00 p.m. before losing most of it's value once again. I have witnessed in the past Ford Call options shoot up on Friday from $15.00 per contract to $150.00 per contract, usually on news of such things as earning reports. In any event, try and make some sense out of this blog and add Exxon to your screen to watch. It does make bold moves in both diretions. That's why I like it?

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