CAT Puts

The morning action. Now it's 157.50 Puts at 10:43 a.m. Now the 157.50 Puts at 12:45 p.m.. ... .... Here above is what the markets were doing just Here is how it closed the day. ... These Puts did nothing all day. Tuesday morning. These Puts take a hit. Contrast this to the gains the Ford Motor Calls had in a blog I am concurrently writing. Fighting Exxon during a war is counterintuitive. To be continued. Read my blog on playing options on stocks in the $10.00 range.

Ford is the stock chosen to explain this situation. Here is it's morning chart.It jumped on the opening with the markets opening up strong and then gave back most of it's gains. So what does it's five day stock look like? So now let's look at two different series of it's Call options that expire this Friday. Here is how these two series of Calls closed the day. Now Tuesday morning. Notice the low volume of trading. Trading options on stocks in this price range is more difficult to do than trading options on stocks in higher price ranges. You can't anticipate the daily swings quite the same way. To be continued.

Let's start with Nvidia Puts on Friday March 15th, Over 55,000 contracts traded on this one series alone on the day.. ... The lows of the day happened when Nvidia was trading around $186.00 in the early morning. It was a smooth move downwards after that. Here is how the DJIA closed the day. 2) Number two on our list is Home Depot. It opened stronger on Friday morning however it closed the day totally flat. Here is how one series of it's Puts closed the day. Notice the spread between the near opening high and the low of the day. It like Nvidia sold off most of the day. 3) Tesla. One series of it's Put options traded over 45,000 contracts on the day. Other series may have traded more. It's chart like the two above was mostly down all day. .. 4) Apple is another stock that took a hit for over $5.00 on Friday. Here is how one series of it's Puts traded. 5) Caterpillar. In this case the big move down happened in the first hour of trading. So what is my point? Wel...

That is when it comes to you being able to figure out what might happen to Exxon options. It's Friday morning. What's going to happen over the weekend to all the oil tankers caught up in the middle east tension? It's scary times. So Exxon opened lower on Friday morning. Isn't that kind of strange? One would think that oil prices could surge over the weekend if the bombings in the Middle East continue. Higher oil prices are now here and that is good news for Exxon, at least in the short term. Here is a chart showing how Exxon's stock opened. It could be somewhat difficult to understand because it is a five day chart and I am only asking you to hone in on the Friday morning activity. That starts at 9:30 a.m.. Can you see the drop during it's first five minutes of trading? The following one day Friday chart shows this drop better. A sideways line shows you where the stock closed on the previous day. Now this. Look at how low the 155 series of Exxon Calls traded...

It's Friday morning. The stock in question is Boeing after going down in price for the entire previous day. That was the topic of my previous blog. What I am now showing is how the stock Boeing was trading seconds before the opening bell in the premarkets on Friday morning and what the 205 series of Calls "closed-out-at" on the previous day. That number was $1.85 down from a high of $7.50 on that day. The volume traded shown on the the first screen below are stock trades in the Friday morning premarkets, not option trades. Options do not trade in the premarkets however premarket option orders get filled at 9:30 a.m. at the opening price then posted. In the premarkets this morning around 9:00 a.m. it showed Boeing up about $5.00. Had you entered an "at-market-sell" ticket on overnight Call options you might be holding your fill will not give you that five dollar gain. You will get a fill based on the the 9:30 a.m. opening price. Now this, just three minutes aft...

I like Wednesdays for mid week reversals. This week is more difficult than usual because the U.S. is at war. These aren't normal markets with the projectory being down. So here is Boeing's morning chart at 10:26 a.m. Remember the first hour of trading and the last hour of trading have the highest volumes of trading. Now two series of it's Call options. Notice the interest in the "at-money" Call options as compared to the "out-of-the-money". Call options. Daytraders are looking at "in-and-out" situations. Now this, a look at the movement one hour later. Boeing continues to go down. I have also added a look at the 205 series of Calls. They are all sliding down. .... Is there now at 11.45 a.m. an uptick? Now at 12:03 p.m. Things are stalling out again. What does Chat GPT say about this situation? All three series of these Calls are taking a beating. Now this at 12:25 p.m. Now this at 1:30 p.m. Now it's readings at the end on the day...