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What does the word disconnect mean? As a verb it means "to sever or interrupt the connection of or between; detach". Option trading - one day options - is a disconnect from the world. What happens to slightly "out-of-the-money" Call options on Costco when the stock shoot up thirty dollars on the day? I will show you what happened on Friday to Costco Calls and the options on a few other stocks I frequently watch. What a disconnect from the real world. But before that a look at how the indexes traded. 1) Costco. It's five day chart and a look at how three of it's option series moved upwards in one day. You may not know how to read these printouts but try to read the highs and lows on these option pricings. One printout shows an "at-the-money" option which means you are buying a contract on the stock, good for one day only at a locked in price equal to (or very close to) what the stock is currently trading at. The other two contracts shown are ...
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Boeing - A Decision -Up or Down on a Friday Morning and Looking at Slightly Out-of-the-Money Calls As A Vehicle of Choice

Slightly "out-of-the-money" Call or Put options give you the greatest kick with only one day to go. With that in mind look at what was happening to the 222.50 Boeing Calls during the first hour of today's trading. On the opening the stock didn't seem to know which way it wanted to go and markets like this can be very exciting for option plays who want to make a flip in a matter of minutes. They just want to-get-in-and-out and never want to think about it again until next Friday morning at the same time.
Getting out an hour later was the name of the game. NOW Lets review this blog. It's saying to put a bid in at the opening on a Friday morning on slightly "out-of-the-money" Calls on Boeing that expire that day. At what price? Well in this case which is extreme (that's what your looking for) it's saying not to have a bid in on the opening but rather a bid in during the premarkets. In this case you would want to have a premarket bid already in at let's say somewhere in the range of one quarter of what it closed at on the previous day. I can't say an exact price but you can use what happened on the opening this morning as a future guide. Is that a good strategy? It depends what you consider to be good. It could be if your style is to "get-in-and-out" quickly with a winner takes all attitude in the first thirty minutes of trading, followed quickly by a mindset of cancelling all of your outstanding buy orders and walking away for thr rest of the day. Option playing doesn't have to be an all day obsession.

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What does the word disconnect mean? As a verb it means "to sever or interrupt the connection of or between; detach". Option trading - one day options - is a disconnect from the world. What happens to slightly "out-of-the-money" Call options on Costco when the stock shoot up thirty dollars on the day? I will show you what happened on Friday to Costco Calls and the options on a few other stocks I frequently watch. What a disconnect from the real world. But before that a look at how the indexes traded. 1) Costco. It's five day chart and a look at how three of it's option series moved upwards in one day. You may not know how to read these printouts but try to read the highs and lows on these option pricings. One printout shows an "at-the-money" option which means you are buying a contract on the stock, good for one day only at a locked in price equal to (or very close to) what the stock is currently trading at. The other two contracts shown are ...
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