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What A Week For Market Swings. This Time Boeing

My last two blogs have focused on options expiring on Mondays and Wednesdays. This blog on a Thursday deals with options that expire tomorrow on Friday. AS A GENERAL RULE PURCHASING CALLS ON A THURSDAY MORNING THAT EXPIRE THE VERY NEXT DAY IS NOT A SMART MOVE TO MAKE. We have witnessed huge daily price swings this week where profits from option trading can be made in a matter of hours. Now let's look at Boeing's morning action. Sometimes when you see charts like this and if you're coming off a streak of three or four profitable trades it's best to jump in hoping for a reversal to the upside and ask questions later. Especially when the D.J.I.A is strongly up in price as it was. I quickly looked around and couldn't find any news to account for this price drop. Trumph was in China and we later learned that there was talk of China ordering 200 more of Boeing's new airplanes. China is always going to want more airplanes. Talk like this is only talk. Now this at 9:51...
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Caterpillar,Tesla And Nvidia Puts On A Tuesday Afternoon. It's 3:40:00 P.M.

Caterpillar is up $40.00. at 340 p.m. Might it sell off a touch before the close?
The DJIA ended up closing the day 1,024 points! Let's look at these three series of Puts series which expire on Friday. First Caterpillar.
Now Tesla and a look at it's Puts about four dollars "out-of-the-money".
Now Nvidia with a focus to be watching it's Puts. Once again I would like to mention than these Puts still have three full days of trading life in them.
These ones are also slightly "out-of-the-money".
Now jump ahead to the closing reading. First Caterpillar once again.The Puts we were watching closed at $7.10 only ten cents higher than what they were trading at when we first looked at them. The Tesla Calls however jumped up to $3.65 from $1.90 and the Nvidia Puts jumped up from $.75 to $1.25.
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This is one approach to playing super strong days in the market without losing any sleep. Puts can sometimes be your best friend. ** A special point to think about. Caterpillar has more institutional trading (of it's shares) than most other stocks. Surging markets means times are good. Why would they want to sell? *** Now a look at the premarkets going into the next trading session. All three of these stocks are trading higher.
Get in and get out, forget holding overnight positions in this kind of market. Overnight weekend option positions are a different. Yes they can be traded.

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