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Two Hour Options On A Friday Afternoon With The DJIA Down Over Three Hundred Points

A stupid move? Right? Maybe. The thought of buying options that expire in two hours. Let me try to explain something that might be missing in your thinkings. Here is a list of five strong stocks that everyone knows about from watching the markets of 2024. Apple, Tesla, Alphabet, Amazon, Microsoft, Meta Platforms and Nvidia. If a retracement of a morning selloff is ever going to happen on a Friday afternoon odds are you should be watching these ones if you are a short term option player. Last Friday, as mentioned in my previous blog the DJIA was down 333 points. Here now is a one day chart of Meta on that day which was Friday December 27th. Hone in now (hone is a word seldom used) on the 12:30 p.m. time period which is 2.5 hours prior to when Friday's options will expire for retail traders. One week out options are also interesting options to consider at this same time period because they would also benefit from an after rebound or the firming of the markets after a morning drop. T...
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Boeing

In previous blogs I have often mentioned how Boeing can pop after a weekend. It happened again this morning, a Monday morning. I could end the blog here and say that that's all I want to say. This time there was news.
Was there a tip off that this might happen? Here is how it closed stronger at the close on Friday. It's not much of a tip off but something.
Earnings come out in a few days.
Now it's three month chart.
. Which way is it going to trade next? That's not my point. My point is Boeing sometimes pops on Monday mornings. Most usually just take your profits on the opening and get out. Here is a look at how the $152.50 series of Calls which expire at the end of the week traded today, a Monday.
Have you sold here the top on the opening today you would have gained about 50%. The reverse is also true. If there a hint of bad news would would probably cause a loss of the same percent. Most option traders dont't like holding "out-of-the money" Call options (Boeing was up $3.98 last week and the Boeing $152.50 series of Calls we used in this example closed last week at $5.93. This would have being an expensive, high risk and short lasting trade to make. There is more to this story and lets start with this news.
Here is how the markets and these same series of Call options we looked at above traded on Wednesday Oct 23th.
To be continued.

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