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

Comparing The Price Action Of Four Different Stocks On a Wednesday Morning at 9:35:00 a.m.

This blog is exhausting to read however it helps to point out the ambiguities of option trading. At times its a grind. A times there is no direction as to which way it might go next. In this blog the markets have just opened a little bit stronger.
Look at how the Call options are trading on these four stocks. Number one on this list is Boeing and we are looking at it's five day chart.
Look at the high volume of stock trading in it on the day. It's three month chart doesn't look very impressive.
Here now are how one series of "end-of-the-week" Calls are trading.
The open interest number is not that high. Let us now show you how it closed out the day.
It's five day chart doesn't look that exciting and the trading volume in it's options is quite light. Here now is how it finished out Thursday August 22nd. Keep in mind however that Boeing can jump three dollars quite quickly at anytime.
Next #2 Tesla. Look at the spike in the volume of trading everyday on the opening. Look at how strong it was on yesterdays opening.
This stock has jumped in the last few weeks. Here is it's three month chart.
Could this weeks Call options keep going up? Could they be a one day or two day play? The open interest in these options is suprising low compared to numbers I have seen in the past. That scares me. I think option traders are smart and made enough money on them last week when it was jumping to know that now could be a good time to move onto something different.
Here is now a look at how it closed out the day. It, like Boeing, it had a relatively flat day. Remember that Wednesday's are most usually days of reversals. So far today nothing has really happened.
. Tesla's action on Thursday. The Calls got wiped out. I will tell you why.
Now for a suprise. Number three on this list is Deere. Deere Calls can be expensive because the stock trades for a higher price than others we are watching and the volume of options on traded on it are usually quite low. Well super low actually. Look, as you can see below there have being no trades in this series of Calls so far this morning. These are however, unlike the other options we are following slightly "out-of-the-money". When this stock decides to move it can jump ten or twelve dollars in a day. Most option traders are afraid to play them.
........
. How did it end up trading on the day? Well they doubled on very low volume. Here is it's new five day chart. It had just a little liftoff but then came off again on Thursday.
Number four on this list will be Caterpillar.
Options on Caterpillar are good to play when the stock is in a one or two week uptrend or downtrend. Look at it's past price actions. Notice the low open interest option numbers. Now here is it's three month chart.
Last week it surged up and this week it is plateauing. One general observation is that the open interest numbers in all of these series of options are relatively low. How did they close on the day and how was the volume of trading in it? There was actually next to no volume.
Now here is how it closed out Thursday.
Then came Friday morning.There was news of interest rate cuts.
Everything but Tesla exploded upwards.
....................
...................
..................

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