If A Stock Jumps On A Friday Morning How Much Better Is An Slightly "Out- Of -The-Money-Call" Than A Just "In-The-Money-Call? The Stock Is Shopify

First it's five day chart.

It's a comfortable looking chart which so many aren't. Can you see the upside volume going into a small spike on Thursday afternoon? Let's get ready to look at it's one day Calls going into Friday's trading action.

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You have to remember that the stock is down a fair chunk on the week so some traders will be in stuck in the higher series "out-of-the-money Calls". That's not our problem. Now a look at it's premarket trading. This is wild. It's difficult to read but the stock is up well over $3.00.

Here is how three series of Call options are now trading five minutes into Friday's trading action.

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Now here is how it ended up closing on the day.

Now this. The 126 Calls went from $1.92 to $4.67, the 127 Calls went from $1.25 TO $1.86, the 128 Calls went from $.99 to $1.53 and the 129 Calls went from $.65 down to $.02. What series of Calls were the best to play? In this case the 127 Calls which were "out-of-the-money" at the start of the day. They closed at $1.25 on Thursday and hit a high on Friday at one point in time of $4.88. They also went from $1.25 to $3.75 in the first four minutes of trading. In contrast the 126 Calls went from $1.92 to $4.85 in the same time period. But wait. If we are talking about options on stocks in the $600.00 range that jump $10.00 or $15.00 in one day the slightly higher "out-the-money" options would generate the best return. I will show you action like that in a future blog. I liked this chart going into this morning's action.