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What Can Happen With One Day Options On A Friday when the "DJIA " Jumps 600 Points

When I sit with my friends on the weekend do I tell them about how Walmart call options traded on the previous day? If I am riding the subway do I talk to the guy next to me about this? Do I tell my boss? My point is, no one cares. People have soceer games to go, cars in getting fixed and all kinds of stresses to deal with. Who wants to watch their computer screens all day trying to outsmart the markets. I get it. Yet if you were good at it, wouldn't this be a fun hobby to have? Now this. A recap of what happened this past Friday. Now a look at one series of Call options with a focus on the high of the day and low on the day contract price. Look at the jump. Now a look at it's one day trading chart. The markets don't usually rally this much on a Friday afternoon. In a way it's a game of being in the right place at the right time. Yet there more to it than that. Knowing what to look for is equally as important. I note that seldom do one day Call options turn out th...
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Staying With the 175 Calls on Boeing Of The Last Blog

One of the things I elluded to in my last blog is that weekends often act a reset buttons for the market. Sentiment can change. So Boeing jumped on Monday morning and the 175 Calls that expire this Friday went up. Here they are. They hit a high of $5.00. Sometimes it takes thirty or sixty minutes on Monday morning before this sentiment changes. That was the case this morning.
Then the market turned south and the DJIA closed dowm 649 points.
Let's now watch what this same series of the Puts did.
Can you see how options can be valuable trading vehicles in volatile markets? Caterpillar had the same story, a bounce on a Monday morning and an afternoon sell off. The Calls on Caterpillar that closed on Friday at $1.97 bounced as high as $8.40 on Monday morning.
Now look at what this same series of the Caterpillar Puts did on the afternoon.
What is there to learn from this? Well first don't be angry at yourself for not catching this action. Look at the low volume of Put options traded. Drops like this on a Monday muddy the waters for the rest of the week. The world needs to rethink the importance of option trading. Sometimes I feel that I am banging a drum that no one is listening to. All I really know is that Boeing and Caterpillar popped on the opening and then got slammed. A look at the same situation at 10:21 a.m. on the next day. First Boeing.
Now Caterpillar.
Can you see the power of options? Can you see the damage Trumph is causing messing with Tariffs? At some point in time traders will step in an attempt to stabilize the markets. Yet why not just stay away and look for happier days. Trying to outguess the markets is now at this time, a fools game.

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