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Costco Drops On A Friday Opening And McDonald's Goes Up

Here is what happened. Costco goes down on the opening. Charts like this is not pretty. McDonald's goes up. Confused? Why the interest in McDonald's? It's just junk food. If the market rolls over might this stock lose some of it's steam? Now look at these Puts? The volume of trading in them is next to nothing. Without knowing why it's going up makes the purchase of Puts too much of a gamble. Now lets look at these same Puts at 2:24 p.m. They got wiped out. What's Costco doing? Here is where things get interesting. The markets are still strong. Costco is down $74.24 around 2:23 p.m.! It's having a bad day but the stock now seems to be stabilizing. Now this. A look at it's Calls. Remember for retail option traders you're deadline to get out of these "last-day-to-expiring" options is 3:00 p.m. That's only 42 minutes away from the time of this printout.That doesn't give these options much life. Now consider this, after such a se...
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Watching Boeing on A Friday Afternoon

Friday afternoon options are near impossible to trade (or are they) and Boing sometimes jumps $5.00 on Monday mornings when other stocks like Deere and Caterpillar are trading flat. It needs the weekends to unwind and reset. Did it survive the weekend without any disasters? It's a big company with many moving parts. Now it's Friday's chart going into the 1:00 p.m. period. Anything can happen.
Here is what the indexes are doing. It's another day of reporters calling out Trump on his lies.
Now look at these two series of Call options. They will expiring in a few hours. Both are "out-of-the money".
Might they move up in the next couple of hours? Here they are again about fifteen minutes later still walking a fine line. If the stock doesn't go up in the next two hours you lose. Is this the kind of game you want to find yourself in? Probably not, there are afterall safer situations to be considering.
Remember with options expiring on this Friday you have to be out of your postion by 3:00p.m. and not 4:00p.m. otherwise you run the risk of getting sold out. That's just the way the system works. If they expire worthless there is no closing out commission to pay. Now let's jump ahead one hour.
$.35-$.38 up from $.23-$.26. The stock has inched up less than a dollar. 445 new contracts were added in the last sixty minutes.
The markets are not doing much. Well they are starting to sell off.
That should tell you it's time to get out. In this case remember that 3:00p.m. is the deadline on Friday expiring options. Boeing ended up closing Friday at 174.63 so the 175 Calls we were watching expired worthless.(I will revisit this blog on Monday to see if Boeing had any weekend pop). Here is Boeing current five day chart and a look at it's new week's 175 series of Call options as of 2:26 p.m. Once again, sometimes but not always it pops on Monday mornings.
Read up on Boeing. It's an amazing company but struggling right now. **** The markets had a suprise jump on the close.
Check back in next week to see how this option series turned out. ++++ Read my previous blog on "Snowflake" which I just updated to talk about how to set up something called a "spread". The bounce on Monday morning.

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