Ford is the stock chosen to explain this situation. Here is it's morning chart.It jumped on the opening with the markets opening up strong and then gave back most of it's gains.
So what does it's five day stock look like?
So now let's look at two different series of it's Call options that expire this Friday.
Here is how these two series of Calls closed the day.
Now Tuesday morning.
Notice the low volume of trading. Trading options on stocks in this price range is more difficult to do than trading options on stocks in higher price ranges. You can't anticipate the daily swings quite the same way. In situations like this take your profits and run. * Here is how Ford closed the week.
The 11.50 series of Calls closed at $.02.
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