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Boeing And Tesla On A Nervous Opening

Boeing's chart. It's Calls that expire this Friday. A flat five minutes on the opening. Tesla, now 24 minutes into the opening is also deciding what it wants to do in this space. The Tesla Calls expire tomorrw while the Boeing Calls don't expire for four days. Here now is a look at the Tesla Calls with the same striking price which expire this Friday. They cost more than double to purchase however this printout is 25 minutes later after the stock has rebonded over $3.00. What attracts me to these two situations? First they both dropped a chunk in price on the previous day. Boeing has a cloud over it's head with rising oil prices and concerns about the debt the country is piling up on defense spending and Tesla is caught up in SpaceX coming soon news which is getting a lot of attention. It's a case of buying on the dips and discounting the possibilities of the bottom falling out of both of these stocks. Now a 10:30 a.m. look at these same Boeing and Tesla options...
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Roku And It's 2nd Quarter Earning Report

Let's start with the time period of Thursday morning with an earning's report coming out after the closing bell. Look at how crazy expensive these three series of Call options are. They are the Roku "out-of-the-money" Call options that expire tomorrow. The volume in them is not all that crazy but if I owned the stock I would be tempted to sell the Calls against my position and hope they would expire worthless. Tomorrow is Friday August 2nd.
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Why pay so much? Why pay $4.05 for a Call with a striking price of "58" with one trading day to go in the contract? The stock would have to jump four dollars just to get your money back? Talk about stupid? Yet then again Netflix, a company also in a similiar space sometimes moves like ten dollars in one day. Here now is a look at what happened by showing tomorrow's five day chart.
Down $2.19 on the day to $53.14 with the DJIA down over 600 points.
Say goodbye to those Calls if you ever bought in. Now let's look at it's year-to-date chart.
Can you see how it dropped about $35.00 quickly on the release of it's first quarter's earnings? That's part of the reason why these Calls were so expensive. On good news it could have really popped. So what were it's second quarter earnings actually like?
It's still reporting losing money per share however their guidance is starting to look more promising. Having the markets drop over 600 points on the day (it was down even more than at one point during the day) really squashed any upside potential. The game never ends. Here now is how next weeks 53, 54 and 55 series of Calls are trading.
Pick you battle. How did things turn out four days later in a crummy market? Not good. Look at these same options. People however are now waking up to the fact that the quarterly earnings report was not all that bad. Trading options is never a walk in the park. There is still time for these Calls to suprise.
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