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Biogen. Can you Play Call Options When the Markets Are Known To Crash 500 Points In One Day?

Drug stocks are difficult to play. Look at Pfizer. Here is it's chart. It sometimes finds itself in the top five list of the mostly activity traded stocks. So does Eli Lilly. Pfizer has gone sideways for a month making it impossible to play options on it. So why then am I looking at this? It's Biogen and not Pfizer and Eli Lilly that I want to talk about. Here is Biogen's five day chart. It can swing. What do I know about the stock? Well not very much but that doesn't precude me from playing options on it. I know that it has sold off a whole bunch this year and I am reading that it has some good stuff now happening in it's pipeline. What does this five day chart tell me? It tells me that the direction the stock is going to go next is simply a flip of the coin. I want to now show you the volume in the 140 series of Call options that expire on it tomorrow. Are you able to see that no one is playing them. With a million things happening in the markets then why am ...
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Three Chart Patterns To Compare.

Lets see what chart pops first. Which one of the three following charts do you do think has the best short term upside potential)? 1)
2)
3)
Here is what the first chart looks like at the close three days later.
Can you see how it spiked yesterday to really end up where it was seven days ago? What stock is it? It's McDonalds. What a wonderful one day rally it had yesterday. 2) This time the number two stock on our list is Boeing. It jumped today after two days of slightly edging up.
Look at how the 180 series of Calls that expire this week jumped on the day!
One thing to notice is how it seemed to test it's lower resistance level this morning before it quickly blasted off. One could say that it helped that the D.J.I. jumped 300 points on the day however the other two charts didn't jump. The third stock is Roku. In it's above chart it seemed to be firmly in a sideways moving pattern. It still is. Patience is a virtue.
Is there anything to be learned from this? Well let's do another blog like in the near future to see what the results are like. Boeing (and Caterpillar) are both in price ranges that sometimes swing like this and Boeing is particularly susceptible to news releases which can be either good or bad. Caterpillar not so much so.

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