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One Day Boeing Puts On A Friday

I realize that this type of a blog has a limited appeal. Many readers would dismiss this blog as being crazy. I get that. A blog in part about watching option pricings on one particular series of Puts, the 215 series of Puts on Boeing move on a minute-to-minute basis on a Friday just before they expire. Here we are looking at Boeing Puts at 9:56 a.m. The stock has just gone up and the series of Puts shown above have gotten crushed. Now a look at it's five day chart. This is where it will get interesting. Notice the stock has already had a rebound off a sharp morning dip. Traders who used the 212.50 series of Calls on Boeing's soft opening were already well rewarded. Only 121 contracts have traded during this period of time. Here is what the indexes are doing. So that's it. You could wager $100.00 U.S. plus commisions for one Put contract (the 215 seriess of Puts that expire in the afternoon), or multiples thereof and walk away for the next three or four hours or so in t...
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One Day Puts On The Stock Eli Lilly At 2.31: p.m. On A Thursday Afternoon

The DJIA is up something like 850 points on the day. Eli Lilly has jumped $50.00 on the day. Happy days are here again. If the markets cool on the opening tomorrow (Friday) could the stock give up some of these gains? If so what would these Puts do? Might the stock give up 25% of what it gained today?
Now it's five day and one day chart.
$850.00 for a Put on a stock that has jumped up over $50.00 in one day. It's a Put that expires tomorrow. Is this a recipe for failure? At 2:42.00 p.m. the DJIA is up 899 points.
Now the action at 2:47:00 p.m.
Now this. In at 2:31 p.m. if you like at $850.00 and out 38 minutes later at $1,100.00. That's a gain of $250.00 and all you did was skim a small gain off a hot market.
Maybe that could be your trade of the day to avoid all of aggrevations of what might happen next. It would be catching the tail end of a 950 point one day rally. That in itself is not a bad strategy. Now a 3:30 p.m. update. Another small gain.
Let's see what happens tomorrow. Now at 3:59 p.m. the market closes strong and the Puts weakened. What school of camp are you in? Take the profits wherever they arise or let things ride and see what happens on tomorrow's opening. I am more of a "see the profits and take it" kind of guy. Why? Well I never investigated the root cause as to why the stock was so strong in the firstt place so why tie up capital in a situation I never understood to begin with. A strong opening on Friday might create yet another situation where looking at the Puts again for a one day hold or a one week hold would make more sense.
Stocks that have massive one day gains are best to look at the day after if they pop upwards again. That's when they might decide to change directions. I will report back after the markets close tomorow to show you what happened.

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