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"Boeing Calls" On A Friday Morning.

I wrote the very same type of blog about Boeing's trading pattern last Friday. In that blog Boeing went flat in price for the entire afternoon. Any profits to be made in the Puts happened in a very limited period of the morning's trading action. Might things today happen in the same way? The price of oil is suddenly up. That's not good for Boeing. Let's begin with Boeing's five day chart. Now it's one day chart on Thursday. Look at how the stock wandered back up towards the very end of yesterday. Could it inch up another touch on the opening and then run out of steam? Would this be a good time to be focusing on the 210 Puts? Experience has taught me not to be jumping into Calls options on Thursday afternoons to catch Friday morning rally. That's more something one might do at the end of the day (on Fridays) to catch a Monday morning bounce. Here is a look at what two series of it's Puts are doing and it's chart about eight minutes into Friday morn...
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$Home Depot And $Lowes On A Wednesday Morning

These are both what I would call "Big Boy"stocks which are somewhat volatile. Their price movements are often dictated by economic reports. Today is a Wednesday which is mid week in the weekly trading session. Options purchased this morning that expire this Friday will give you one full day of trading today and two more full days of trading. Both of these two stocks are up about $10.00 per shsre in the last two days. Both stocks can move either way. My focus is on the Puts which are both somewhat expensive. They have to be because these stocks are so volatile.Catch the right direction and you will do quite well. Retail stocks like this have a wide following and the price of both of these stocks can be affected by a number of differing ecomomic reports. For this reason the timing of swings can be somewhat of a guessing game. Now this. New home sales in the U.S.A. where down 6.2% in March and down 11.3% in April. It's May numbers are not released until June 24th. Now Home Depot's five and one day chart as of eleven a.m..
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It's hanging tough with the markets being down.....
.... Now it's Puts.
Now Lowes.
Both stocks are hanging in on a day the DJIA is down. ( LOWES IS 74% OWNED BY INSTITUTIONS AND HOME DEPOT IS 71% OWNED BY INSTITIONS). With the markets falling and these two stocks staying strong it seems counterintuitive to be thinking about the downside. Once again this is one of the reasons I find playing options on both of these stocks so difficult. Now at 12:38 p.m. Look at how Lowe has become defensive in their option pricings.
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Let's see what happens. The D.J.I.A. ended up closing down by 953 points and both of these stock held tight. What a missed opportunity ... other stocks had sizeable declines.
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Now Home Depot....
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Both of these stocks should be plays on recessionary concerns however in this instance that doesn't seem to be the case. Yes these are difficult companies to play options on. To be continued.

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