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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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April 8th A Tuesday And The 2,962 Point Jump The Next Day

A market rally in the morning on fake news that the tariffs are being cancelled.
Then a selloff again. Playing options doesn't work in this market. The premiums demanded to buy into the game are to expensive. That's what happens when individual stocks move five and ten dollars in one day on a regular basis. Now look at these three examples. 1) Boeing.
$556.00 for a contract that expires on Friday. That means it has to jump $5.00 in three trading sessions just to break even. It doesn't make much sense. Yet in all fairness the stock is down $30.00 in only a few trading sessions so it could very easily jump $5.00. 2) Eli Lilly. Down about $95.00 in the last few days. Sure it can and often does bounce in both directions but look at how expensive these "end-of-the-week" Call options are.
$2,345.00 U.S. Who has that much money to take a three day flyer? The stock would have to go up about $30.00 in three days just to break even. Based apon it's erratic moves as of late it certainly could but why take that risk? Or what about Ford?
A bounce back up to the nine dollar a share level will give you your money back and anything above that would be a profit. Once again, why take the risk? Remember how I have said option traders like Wednesdays? That's the one day of the week when market reversals often happen. Yet after having a false reversal in the markets yesterday on Tuesday any attempts for rebound tomorrow might be met with skepticism. Yet then again who knows. Check back later to see how these three options series close out the week. Now the next day.
So trump postponed some of the tariffs. What an opportunity to make his cronies rich. They would know of that good news in advance. It's not fair. They would be playing the futures market market and not so much the options markets because the future markets have more of a direct upward or downward surge. Look at how the Boeing options popped. Then there is Eli Lilly.
All things considered these options didn't actually jump that much and Trumph is talking about special tariffs on companies in the pharmaceutical industry. Look at the volume of trading. That's because the premiums were so expemsive. That's why it's near impossible to play options in this type of markets. Then Ford. A suprise . It bounced.
A previous close of $.43 and a close this time of $1.01. Good but not super amazing. In normal markets it would only take a jump of three or four hundred points in the indexes to create these types of percent increases. Tommorows another new day. Traders are turned off by all this stupidity. People who panicked and liquidated their retirement plans at discounted prices feel cheated. We are not living in normal times. Now Thurday. Here is how the markets traded.Just the three stocks we are watching.
Boeing, a recent recipient of military contracts is showing some resiliency. Eli Lilly is nervous and tanked. I have mentioned before new drug stock issues. No one is playing these options.
That leaves us with Ford. Trump is not backing down on his auto tariffs however the stock is up slighty. Options trading in the one dollar a contract range will often pop or crash on their last Friday morning opening.
All of this now takes up into tomorrow a Friday. Let's see what happens.

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