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"Tony The Tiger" - A Food Stock

The mood of Wall Street is now changing as the reality of tariffs is starting to kick in. Two weeks ago not so much so. Kelloggs had "so-so" earnings come out a few weeks ago and the stock exploded upwards. Note the very last line above mentions the effects of tariffs are not taken into consideration. So many stocks with "so-so" earning reports have jumped in price based on the "lets make America great again" slogan. Deere stock is shooting to the moon as I keep writing about in spite of declining sales in the last quarter. The sentiment seems to be that they are immune to tariffs. On paper they might be. Read this. Americans are struggling to buy gas, eggs and insurance. Total housing starts in the U.S.in 2024 were down 3.9%. Walmart, the recent darling stock in the last four weeks for Call option players woke up this morning with an earnings report which was healthy but with came with some caveats. Here is what happened. Perhaps the U.S. is starting ...
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Watch Boeing Jump On News

First some news as the markets opened. Horwmet Aerospace offered this sobering news.
Then good old Joe made this statement.
Now the opening chart.
When I see opening charts like this I always want to play it in the opposite direction. What was my take on all of this news. New contracts are great, people are flying again and ticket prices are up. It's all good but Boeing doesn't really need more deals and orders. They are still trying to get back on track. Would this morning bounce go away? I thought so, I jumped in on Puts.
In at 9:45 a.m., 9:48 a.m. and 9:50 a.m. . I was confident in what I was doing but the stock seemed to stay persistently high.
Then I got frustrated with how it was trading and bailed out.
I sold all four contracts at 10:42 a.m. at $2.61 per contract so I only made a touch. I was in this position for just under an hour and was starting to worry about a second wave of buying coming into this position.
This chart above illustrates how they jumped higher in price after I got out and the chart below shows how Boeing traded on the day.
In hindsight these Puts reached a high of $3.70 at 11:50 a.m. I also did a short chase of Boeing as it rebounded but once again didn't have the patience to stay with it. Here is what I did.
In at 11:51 a.m at $375.00 and out at 12:29 at $430.00. a period of time of 38 minutes. I left good money on the table. I went on to successfully trade Visa on the downside and got out of that position 3:59:21 p.m. The DJIA closed down 156 points on the day. Visa released this news after the markets opened this morning. It sounds ambitious but seems a touch risky.
* see my most recent blogs about playing Visa.

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