Featured

Ford Calls and a Big Surprise.

Look at this Ford chart on July 1st. Now todays Call options. Every quarter these types of reports come out. This one was good. Watch for it Next July 1st. A $2.00 option went up to close at $37.00. In my introductory remarks to this blogging channel a few years ago I said many old farts driving Mustang convertables paid for them from money made on playing Ford options. This bounce today in the Call prices based on this good news report of rising sales was one of those events. Now this, the strenght continued into the following day which is Wednesday July 2nd. This is a short week for option trading with tomorrow being the last day. Action like this is extremely rare.
Post a Comment

Let's Think about Going For a Ride "Boeing"

Monday was a long and sideways day for "Boeing". Things didn't look so great an hour into this mornings trading. Here is it's one day and five day chart. It's first quarter's earning report is now history.
Here now is how one series of options traded on it. The "C" stands for "Calls" and the "P" stands for "Puts". Look at how the daily trading volume on the "Call" side is so much greater than on the "Put" side. Also look at how the open interest are smaller than the daily volume of options traded. What that tells us that traders are playing interday swings. It's safer not holding onto overnight postitions. Do you want to be part of this action? The nice thing for Monday traders on short term "Call" options is the safety of having four trading days left in this series.
Let's check back at 10:30 a.m. tomorrow to look for a playable swing. I missed 10:30 a.m. self imposed check in time. Here is the action at 10:45 a.m. The DJI was down 275 points. Was 10:30 a.m. was the time to get in? You decide.
Yet another look at noon. Does it now look like it wants to bounce?
Here now is a look at another series of "Puts", the 240 series of "Puts" at 12:20 p.m.. Does this now give you a better appreciation of the power of playing the downside?
Now it's 2:10 p.m. and here is what I did. I got out of what I bought during the morning. Why did I get out? One reason is that this is a teaching website and I want to show my readers that short term traders can poke away and eak out small returns. Are you also able to see how at about 2:45 p.m. it looked like the rebound was slowing down. It's difficult at times to be riding a wild horse.
In at $3.40 and $2.85 and out at $3.72 .
**** an end of the day update... the markets came charging back and I got out to soon. Here is what these options ended up closing at. More about my thoughts on this later. This turned out to be an exciting day for mid week option traders.
It's strange how noon time turned out to be the low of the day.

Comments

Post a Comment