Boeing On A Friday Morning

Let's start with the assumption that you didn't purchase Boeing Calls on the close yesterday hoping for an early morning rally. Boeing has been flat as of late. There was news on Boeing back around 5:00 a.m. this morning. 5:00 a.m. is a better time period than 9:00 a.m. to release news like this. The shock value of this news has had a few hours to dissipate.

It was from the Federal Aviation Administration but Boeing paid it out back in January. Boeing always has news of some sort. The stock is now somewhat range bound at 10:20 a.m.and Boeing can be an interesting stock to play options on Friday mornings. It's 210 series of Calls at this time are trading at $1.09 per contract.

Now it's five day chart.

Might it break out to the upside?

It's Calls have jumped from $1.09 to $1.40 in eight minutes. If I run off to brush my teeth how much will they be worth in seven minutes?

Is the stock still range bound or is it breaking out?

Now this six minutes later. Notice the new high of $1.52 during this period of time.

Now this four minutes later. If you get out here you could get on with your day. Friday morning options can turn on a dime.

Now a dip.

It's 11:00 a.m. and things have gone flat.

It's now noon.

...

Staying in your postion going into the afternoon is not a wise thing to do. Boeing options are worth watching on Friday mornings if it has a flat opening.**** Boeing towards the end of the trading session.

Notice at 2:36 p.m. how wide the spread is before the 3:00 p.m. deadline to get out. That's less than twenty five minutes away. Option makers don't want to let daytraders out making large profits. It's kind of how their game works. Here is the closing reading at 3:00 p.m..

One day option trading can sometimes feel like an eternity. *** Part two of this blog. Here are Boeing's five day and thirty day charts.

Now here are it's next weeks Call options and it's Calls options two weeks out. The game never ends. You can buy the two week out Call options and sell against it the next week options and your net cost would be $1.70 or one hundred and seventy dollars (plus the cost of two commissions). At any point in time you can buy back the shorter term options, hopefully at a lower price and hang onto the longer term options.

In two weeks time this stock could be twenty dollars higher or lower. Boeing options give you a fair ride.**** Just a quick reminder of a bog about Boeing I did last December. Sometimes Boeing suprises.

These Call options closed for pennies the day bebore.