CAT Puts

 I have four stocks to report on. This blog is a follow up to the action I talked about in a June 15th blog. We now have just finished a four day trading week. Here are the highlights of what happened in no particular order.. 1) CarMax.  Here is how one series of it's Call options on it closed on Thursday of last week. Why are we looking at this? Well it shows what the 65 series of Call options were trading at, one week before their earnings report came out.  Would that be a clever time to get into these options in anticipation of good news? The quarterly earnings report were coming out on the morning of Friday June 18th before the markets opened. If you want you can now call a toil free number to listen in on their earnings report. They will keep that line open and free to listen to for a week or so until up to the end of June. The number to call is posted in the past blog. I called in an listened to it. Two of the things mentioned in it were their average vehicle sale p...

 Caterpillar and Deere at 11:00 a.m. on a Friday morning. I will try and make this simple. 1) Caterpillar. Shown are both the Calls and Puts which expire at 3:00 p.m. today. Caterpillar jumped up in early trading and basically sold off to where it started the day. The problem now for option traders is the wide spread between the bid and ask. Sure you can try to get a fill on the buy side by splitting the difference however when it comes to selling you will be forced to accept a selling price closer to the bid than to the ask. That's a major concern. 2) Deere. The same thing. Look at the wide spreads between the "bid and asks". Once again, getting into or out of these contracts at a fair prices would be difficult to do with the spreads this far apart at this time of the day. This reality helps to keep option traders away.  Now compare this to the relatively tight bids and asks found on one day options on  the stock Walmart. As you can see, Walmart options are so much more ...

 The one day chart looks compelling. It's of Costco at the start of this week. Compelling that is to be looking for a rebound. But then again the volume of trading is low so that is not likely going to happen. Costco is the kind of stock you always have to watch but rarely get involved with when it comes to option  trading.. People are always going to be buying food and Costco operates at the top of the food chain. The Puts as of 2:20 p.m. as shown below have jumped in price. Notice as also shown below the low trading value in this series of Calls. It's an upday on the markets in general.       Is  this a good chart formation to be looking at for a reversal? Some days Costco drops fifty dollars in one day. Let's look at the 990 series of Calls. It's  now 2:21:00 p.m. on a Monday. Could they rebound?    Here is how they closed the day at 4:00 p.m.. They are down another $2.86 from where it was trading at back at 2:00 p.m.. The fact that t...

This might be a difficult blog to read but it might open your eyes to an entire basket of stocks you never thought to consider playing options on. That said, try and get through this read. Open the sliding door and guess what might happen? Suddenly you will get a feel of which way the winds are blowing? Stocks in the used auto car industry got dumped on last week on tariffs news. Trump came out and said he might raise the tariffs on new cars to more than 25%. He also did something to mess up "the wind and solar energy companies" to the delight of big oil. The stock First Solar is getting crushed. 1) Carvana Company. It sold off over $21.00 dollars on the day last Friday. They have a reputation for having share manipulations with a long history of  insider trading. The stock has a short interest of 5.3% .  It didn't help much that the DJIA was down over 700 points on Friday. 2} CarMax also sold off on the week. It is the company many Americans go to when they want to dump ...