CAT Puts

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 $...

First let's start with Big Bear Al. Ai stocks in the last couple of weeks have fallen out of favor. Ai stocks are known to suprise. .. Now Nio. These options have excellent liquidity and the stock has had a recent earning's report. The next stock is Hertz which has struggled as of late. It does jump on occassion. Now a Thursday morning update. 1) BigBear Ai. 2) Nio. Numerous Youtube videos talk about this stock. That doesn't necessarily make it a good buy. 3) Hertz. Short term options on stocks in the $5.00 range. Now here is how they closed out Thursday. ... ... What didn't help is that the D.J.I.A. was down 667 points on the day. Now Friday and here is how these three series closed. The one day drop of 667 points killed everything. Better luck next time.