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Super Micro Trying To Play The Downside After A Strong Earnings Report.

When a stock jumps bigtime on the opening can you play it on the downside? Now two series of its Puts that expire in two days. Now this. The Puts are starting to go up. What do you do next? Cash out with a slight gain? Here is it's five day chart. Can you see how trading short term options have periods of time leave you riveted to your seat. Now another update. .. Might this be a good time to get out and take your money back? Probably. The longer a stock like this goes sideways the less value the Puts will have. To be continued. Getting out was the thing to do. Here is how Super Micro closed on the day.
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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 a.m..
The interest in playig this "at-the-money" series of Call options at this particular time in the day wasn't all that great. What's next? Is this the start of a rebound? Our next readout is nineteen minutes later.
So what's next?
The Calls are now $5.00 up from $3.90. Well they actually went down to $320.00. Now this.
...
You can see Boeing's big opening drop and small rebound. The rebound was playable. Things then got ugly very quickly. An opportunity presented itself to catch a second wave downwards. Who would be clever enough to catch that directional move? These Call options closed at their low of the day at $140.00. Rising fuel costs are not good for Boeing.

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