Featured

Boeing - A One Day Chart That I Now Like

Here is is. Why do I like this chart? It spiked on high volume in the morning and volume came into it on the close. So here is what I did. If you see charts like this you could be also be doing this. On a cautionary note Boeing has hit a rough patch as of late but this trade might be good for a one dollar profit. If it happens take the money and run. If you miss a four dollar move to the upsde so what. Here is a fill at 3:37 p.m. which I could have got for less a few minutes later. Here is Boeing's five day chart of torture. What might happen? Could it stumble on the morning trying to get fresh legs? Maybe.
Post a Comment

Five Day Options on Tesla

First a Monday morning August 12th premarket look at Tesla. First a thirty day chart.
Tesla has a lot of moving parts which means that no matter how much you study the dynamics of how it operates you never can predict which way it is going to move next. Here now is a look at this coming Friday's 200 series of Calls and Puts. These numbers show closing Call prices of the closing markets last Friday.
Do they look kind of expensive? It looks like you need a price swing of at least five dollars over the next five days to make any money trading them. What a daunting challenge. Let's move forward. Let's look at the days closing numbers on these two series of Calls.
Notice how the open interest number in the Calls is unchanged. These numbers will only be updated before the following mornings openining. Now the Puts. There are always more Call than Puts outstanding.
Now lets jump into the action on Tuesday morning at 11:49 a.m. . Tesla is jumping up.
Now here it is now at the end of the day.
Now think back to the start of the week when the 200 seres of Calls where trading at $560.00. Day traders, take your money and run.That's what daytrading is all about. It helped that Musk had an interview with Trump which was widely watched. The two seemed to be able to work together. For Tesla that's a good thing. Yes you can sometimes buy Telsa Calls on a Monday morning. To be continued. *** The next day which is Wednesday July 14th. Here is how Tesla in trading in the first 30 minutes of trading. Sitting in Telsa calls for to long is never a good idea.
What's next? Thursday. Look at its chart and the 200 series of Calls we started with. Not every week goes this well.
Now Friday's end of week readings.
Tesla was up $16.12 on the week.

Comments

Post a Comment

Popular posts from this blog

A Fireside Chat - One Year Options and Thirty Day Options. Which is Better?

Image
Some say to think small, not big. Trying to play Disney options is thinking big. It is a stock slighty out of favor. If we start with it's a three year chart, we will see it is down by about 50% over that period of time. Now it's one year chart. If the stock can break 110 in early 2024 the sky is the limit. It does have a lot of moving parts so anything could happen. Look at these Calls options one year out. One year in options buys a lot of time.They look reasonable. If the stock ever inched up to the $105.00 price level in the three or four months these options would jump up in price by about 50%. Even more if they had really good news. Yet it's the "what-if" aspect of the equation that castes such a trade in doubt. "What if" stories just don't cut it. There are to many variables in play. Then again, why are we even thinking of long-term Call options after a December's rally? Let's switch gears. If consumers are out spending for X-mas
Read more

The Crazy Last Day of Option Trading In Tesla.

Image
First, look at it's five day chart. Big jumps everyday. If you try and jump in and play the downside everyday you will quickly get beat up. Here for example is one look at the Tesla 235 Puts on Wednesday at 9:34 a.m., only then to check out the same Puts a few minutes later at 10:15 a.m. How do you know what to do? Well you don't fight stocks running up over $8.00 in the first thirteen minutes of trading. Now here is how these Puts were trading at 12:59 p.m. The game is to sell the Puts when the stock is rising and then cover them to be out of the markets at a profit by the end of the day. It's not the small fish playing this game. Now today is Thursday July 4th and the markets are closed. Tomorrow is Friday July 5th.These Put options will be expiring at tomorrow at 3:00 p.m. If Telsa opens down two or three dollars on the opening there is the potential for a small reaction. They will still however be extremely "out-of-the-money". They might jump a touch i
Read more

I Wonder How The Back Office Is Going To Handle My Complaint

Image
The blog is about dealing with the back office of the brokerage company I trade with. This story happened today. Todays trading session has closed and I just made a telephone call to them just after the market closed to voice a complaint over how I feel I got short changed. Here are my background notes. 1) It involves trading the 370 Boeing Puts that expire at the end of this week. I bought in at 10:08:34 a.m. and sold out at 2:59:38 p.m. I was stuck in this position longer than I had hoped. I got lucky and did O.K., however that is not the point. 2) Here are my two "in-and-out" tickets. Two contracts in at 10:08 a.m. at $163.00 each and two contracts out then "at-market" for $365.00 each at 2:59.38 p.m. Now here is Boeing's one day chart. It dropped precipitously from 2:59:00 p.m.to 3:00:p.m. I just happened to be watching it at the exact time of the crash. That's when news came out that the "FAA opens Now a Boeing Inquiry over 787 inspections"
Read more