$BA – a Boeing trade better than #Bitcoin

I didn’t trade this but WOW!

Ah, the possibilities! The possibilities!

BA gave a buy signal today on a 10-minute chart at 6:40 (pacific time) at 297.26 (see chart panel below). It’s 300 weekly call (expiring today) crossed into the money at 8:00 (pacific time), at 45 cents per contract. Both then just kept going.

At last look a few minutes ago a $10K buy in the 300 call is now worth $106K, up 1000% and change on a 2.6% move in the stock itself.

It would take some real focus to find this trade, and real discipline to take this trade, but it is one of those possibilities that are always there, and sometimes one could just gets lucky.

(click on charts for a larger view)

2 thoughts on “$BA – a Boeing trade better than #Bitcoin

  1. Noob here…but how is it possible that a a call option, so near the money, is only $.45/contract? I understand the options were expiring that day, but still seems odd to me.

    For comparison’s sake, BA’s Jan 12 322.5 call weekly option (2 days to expiry) is priced at $.48/contract currently. This is out of the money by $6.50.

    Thanks for the help!

    1. I’m sorry I didn’t see your comment soon enough to fully consider the numbers you are noting. On SPY and QQQ at the money options, there’s usually about a $.50 premium that has to be overcome by market direction.

      I’m not sure about the BA spread between the stock price and the option strike except maybe the resent volatility caused that.

      The main point would be if you don’t know or understand what you’re doing, don’t do it.

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