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Costco Drops On A Friday Opening And McDonald's Goes Up

Here is what happened. Costco goes down on the opening. Charts like this is not pretty. McDonald's goes up. Confused? Why the interest in McDonald's? It's just junk food. If the market rolls over might this stock lose some of it's steam? Now look at these Puts? The volume of trading in them is next to nothing. Without knowing why it's going up makes the purchase of Puts too much of a gamble. Now lets look at these same Puts at 2:24 p.m. They got wiped out. What's Costco doing? Here is where things get interesting. The markets are still strong. Costco is down $74.24 around 2:23 p.m.! It's having a bad day but the stock now seems to be stabilizing. Now this. A look at it's Calls. Remember for retail option traders you're deadline to get out of these "last-day-to-expiring" options is 3:00 p.m. That's only 42 minutes away from the time of this printout.That doesn't give these options much life. Now consider this, after such a se...
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Boeing Calls And Caterpillar Calls Five Days Out On A Monday Morning.

First Boeing's 30 day and 5 day charts. Boeing can bounce five dollars in a week. That's what some traders are now hoping for.
Now look at these two series of Calls and look at the impressive number of Call options opened in the first 30 minutes of trading.
Traders are even jumping into "out-of-the-money" Call options thirteen dollars higher in price than what the stock is now trading at. If the stock was to ever jump four or five dollars in one day these options would pay off handsomely. If not they will quickly languish in price.
Now lets compare this to the trading volumes in the first 50 minutes on Caterpillar. Here are its five and 30 day charts.
Notice how light the trading volumes are in comparison.
Why is the option trading volumes in Boeing so much greater than the option trading in Caterpillar? One reason might be the way this Boeing chart looks on a longer term viewpoint. It explains why Call options once again $13.00 dollars "out-of-the-money" are attracting attention.
Investing in Call options on a Monday morning is to simplistic a strategy from my point of view. In my last blog I talked about Caterpillar jumping sharply on the previous trading session, a Friday. Guess what? The rally carried over today. Here is how the trading day ended for Caterpillar.
What about Boeing and the wildly "out-of-the money" Calls? Well here is it's current five day chart and here is how the two series of options we were watching closed. Boeing only inched up a touch.
Note the 200 series of Calls did not do that well as buying into them is kind of a stretch. All this action today is somewhat atypical. READ MY OCT 3TH BLOG. "BOEING-TROUBLE WHERE TROUBLE SHOULDN'T BE".A Tuesday Oct 10th update. Here is a look at the 190 Calls five minutes into the opening trading. Boeing is up.
Here now is how the five day chart looks.
To be continued. Well maybe not. The point of this blog was to say that buying one week Calls at the start of the week is not the brightest thing to be doing.

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