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More On The Concept of "One Day" Option Trades On Friday

How do you learn about stuff like this? One way is to look at raw data. Here is the raw data on how five different stocks traded last Friday. Only that Friday. We don't care about any other day. After looking at these charts I want tell you I know what your answer its going to be to this question. The question is, is there anything in particular that stands out about the one day trading patterns of these five stocks? Your answer is going to be they are all different. Good answer. If you are ever going to start trading one day options wouldn't it make sense to pick five of your favorite stocks and save the histories of how these stocks have traded on recent Fridays. Tesla swings big and it would be interesting to see its last four week's Friday trading histories. Tesla has the added intrigue of having higher risk "out-of-the-money" options that are known to burst in price on twenty or forty dollar swings.Tesla stock sometimes does that in one day. (Other stocks n...
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Boeing and Caterpillar

These blogs are starting to get repetitive. Blogs about Boeing and Caterpillar rising after Monday's meltdown. The DJIA was up today over 500 points and here is how these two companies did.
Look at the extremely light volume in both of these two Call option series. What does this tell us? Two things. It tells us about the sophistication level of today's traders. Getting in on a Thursday looking for a one day bounce is not a smart way to trade. Secondly, these are both "in-the-money" postions and the best percentage kicks happen with near-to-the-money options. Let me show you the swings on the 195.00 and 197.50 Caterpillar Calls today. Both were up over 200%.
In both of these series the volume of trading exceeded the open interest levels. Out-of-the money postions in near term expiring Calls is where the action is on days that enjoy 500 point rallies.

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