CAT Puts

Last Friday's blog covered the same topic. Here we are on Tuesday after Monday being a holiday. Tesla down $12.58. We are looking at Call options five dollars "out-of-the-money" with 1.5 days of trading life in them. ... Now this. A bit of a pop after lunch. Now here is how the stock traded on the day. Can you see how the exit point at 2:10 p.m. was a tad premature. Yet look at how smooth a ride it was. What did these Call options ended up trading for at the end of the day? Well it doesn't really matter. My last blog about playing Tesla showed the vary same thing happening. Yes you can play these options if you time it right. Timing is everything. Thousands of traders are tuned into this action.

Exxon dropped on the opening. It was it's first trading session in three days. .... At 10:01 a.m. the interest in playing it for a rebound was muted. Now this. ... A sell ticket in at $2.70 would at this point would get a fill in seconds. Now this at 11:05 a.m.. Timing is everything. Here is how Exxon closed the day. This kind of action never stops. See my November 19th blog "Can You Play Exxon Crashing On The Opening? The sell off that morning was even larger. ** Exxon on Wednesday continued it's upward trend.

Here is it's five day chart last week. It jumped on Thursday morning and on Friday morning. It's chart looks perky. Will it jump again on Monday morning? No because Monday morning this time is a holiday. Will it jump on Tuesday morning? On Friday the stock was up $3.61 and here is how this one series of Call options closed the week. These are Call options only slightly "in-the-money". If there is an opening bounce on Boeing on Tuesday morning these ones could quickly jump up in price a touch creating a "get-in-and-get-out-and-never-look-back-situation". Let's see what happens. (Did you know that Boeing suspended dividend payments back in March 2020?). It's now Tuesday morning. Up 15%, not much of a jump, the markets opened mixed. Let's try this again next Thursday before the close. *** PART TWO Remember I used the word perky to desribe the action in this stock? Now look at this. It's action a 12:28 p.m.. This time it's an example of b...

I should have called this blog "Ford Calls" or "Harley Davidson Calls" to get more hits but this time I want to show you something a little bit different. What I want to show you is how options with seven days of trading life left in them can suprise. Seven days and not five days. What's the big difference? Well the extra day buys you the action of a Friday bounce without having to worry about your option position expiring that day. Seven and not six days also. These options would need to be bought on a Thursday before the close. This may sound kind of confusing but let me show you two examples of what played itself out last Friday. Let's first use the stock Harley Davidson and use it's Call options as an example. Here is how "seven-day-out-Call-options" would have traded the day later on Friday February 12th. They jumped 60% in one day! What kind of a jump in the stock's price would have caused that to happen? Well let's look at it...

First, here is what the D.J.I.A index is doing, not that it matters all that much. These Calls are down like 50% from the previous day. Tesla did drop on the previous day, a day in which the market dropped 669 points. Some stocks are having a good morning. Look at Snowflake. Might Tesla wake up and take off again? The same with Apple which had a big fall on the previous day. This kind of nervousness is what Friday morning one day option trading is all about. Some option traders capitalize on situations like this buying instead next weeks out day (five day) options. Let's see what happens. Now this at 12:42 p.m. The DJIA index is creeping up. .. I don't really like the slow creep back up knowing that with any bad market news everything could sell off in a heartbeat. I would just get out. That's me. To be continued. Here is how these Telsa Call were trading at the 3:00 p.m. get out deadline. Now here is how Tesla closed the day. Sometimes taking profits when you see them...

It's Thursday after the close. 1) This is how Apple closed. What I am showing is it's five day chart.Today Apple had it's largest one day drop of the week. 2) Here are it's Calls and Puts on one series of options that expire tomorrow. We are showing the 262.50 series of Calls and Puts. I am impressed by how tight the bids and asks are. Some other stocks like Walmart also trade like this. ......... 3) Look at the price increase on the Puts today. This was a day when the D.J.I.A dropped 669 points on the day. These Calls now look cheap to me, but who needs to be in a game like this? There is no tommorows after one day options. Most short term option traders avoid the stress of holding last day options going into the final day of their trading lives. There will always be new action in tomorrows trading session. Let's watch and see what happens. *** So Apple dropped $13.77 on the day and the 262.50 Calls which are "out-of-the-money" by $.77 cents now cost $...