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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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Pick Your Spots To Play The Downside.

It's Tuesday morning and Boeing jumped up $17.30 on the previous day. That's a jump in the stocks price of 8%. Here is it's one day chart.
There was news.
It helped that the markets in general had a good day.
Will the stock jump again on the opening? In premarket trading it's slightly up. Can you catch the downside action with Puts on the opening? Should you? Is fighting a strong stock a stupid thing to do? Here we are three minutes into the trading action. The stock is only up a touch yet these two series of Puts are down, one series 37% and the second series 41% and the trading day is just opening. Both are super leveraged trading vehicles.
But wait. The bad news is that the markets are surging up.
Caterpillar is on fire.
Is hanging around with Boeing Puts a smart idea in times like this? Not really. Just get out.
Get out. Forget this ever happened. Who cares if these Puts go even higher. A ten minute trade lets you get on with the day. Caterpillar also offered a brief moment to catch the downside in a similiar way.
** So what ended up happening? Boeing was up over $3.00 on the day.
The D.J.A.I. moved up over 600 points.
At this point in time there is an urge to buy in again on the downside. Yet that entails holding onto over night options positions, positions that expire in three days. Experienced day traders by definition stay away from situations like this.

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