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Trumph Picks A Friday To Change The Rules.

This is kind of dirty pool. So the stock and options jumped on this news. Did Trumph's cronies get in on this action? It's difficult to tell as they could have got in a few days or a week ago and they could have bought Call options with longer term expiracy dates. Or his stockbroker cronies could have bought the stock to also profit in this gain. Certainly the authors formulating these policy changes were part of this action. In all fairness I can't prove that insiders profited from this Friday event. Yet here is the thing. Releasing this kind of news on a Monday or Tuesday would mitigate this kind of an event from being as impactful as it potentially could be. Option premiums shrink in value the closer you get to their expiracy dates. Lawmakers know this. They should know better than to allow this to happen. No government policy changes that will directly effect the stock market should be allowed on the trading days of the week when the majority of short term Call and P...
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Exxon Calls Options And War. What's Happening This Week.

Last Sunday I started this blog and never posted it. Here is how it started. The next few weeks will not be normal times for Exxon options. Trading them for the last couple of months has being a walk in the park with crude oil prices stuck in a sideways moving price range. All that is suddenly going to change.
Now on Tuesday afternoon I am showing you this five day chart and what one series of this week's Friday expiring options are trading at. The 152.50 series of Calls that expire this Friday.
Now this at 3:13 p.m..
Let me point something out. Exxon spiked on both Monday and Tuesday morning. It seems to do that with the world waking up to new problems. In the opening minute or two of each trading session a feeling of panic is in the air. Will this happen again tomorrow morning? In my most recent blogs I have being emphasizing the new need for option traders to adjust their trading horizions to interday moves only and to avoid to trying to create overnight holdings. Let's what and see what happens this time. Will they spike on the opening? What's this? Wednesday premarket trading numbers.
Premarket trading numbers can often change quickly.
How likely is this to happen? Now this at 8:31 a.m.
Now Wednesday at the close. The jump didn't happen.
So here we are a few days into this exercise and we are losing the battle. Let's see what tomorrow brings. Thursday wasn't much different.
Now Friday morning. A jump in price. The real action was in the 150 Calls, not the 152.50 Calls.
So what really happened? Exxon did suprising little in mid week trading. There was a Friday morning spike upwards. It reflected the uncertainty of what might happen over the upcoming weekend. Smart traders were buying the "at-money-Calls" on Thursday just before the close.

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