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Living on Kraft Dinner?

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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A Monday Morning Let's Start Off The Week Blog. Boeing

Boeing had a rough week last week. It was down $13.59. What a precipitous slide. Now here is a 11:00 A.M. look at one series of Call options that expire this week. These are not the brightest of options to be considering. Hoping for a Monday morning bounce could be only wishful thinking.
Now here is it's morning trading chart and it's five day chart. Look at how the stock went down all last week.
Tuesday was a touch better. Look at the 30 day chart. Could this be the start of a rebound? Probably not. The chart looks ugly.
Now the one day chart and how the markets closed. This chart is now starting to look like the Boeing we know.
A tough start to the week and Wednedays are often days of reversals. Not this time.
Thursday. It offered a chance to get out in the morning and after that the nervousness of holding onto a postion going into a Friday morning spooked option traders. The stock only end up $.03 cents on the day.
This chart better illustrates the hour-to-hour trading volumes and prices.These Calls opened down and quickly shot back up again.
Friday saw the markets sell off.
Here is what Boeing did on the day.
The Boeing Calls only offered one chance to get out.
It wasn't much fun to be playing Boeing Calls. Here is how it's five day chart ended up looking.
It was another tough week in the markets. Closing points. Wednesdays can offer reversals and Thursday afternoons can be a trap.

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Living on Kraft Dinner?

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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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