CAT Puts

Read my last blog. Yesterday John Deere shot up to the sky. Will there be a fallout today? That's the current question. The first printout shows the 645 series of Calls at 10:17 a.m. There was some action early in the morning. These options expire today. Look at this printout. The Call options crashed on the opening and then rebounded. I can explain better what happened by showing both it's five day and one day chart. Can you see the massive jump it had yesterday? Now can you see on the printout below how it dipped on the opening at 9:40.00 a.m. to 647.05? That's when the 645 Calls dipped down to $6.00 before jumping back up again and doubling in price. One has to now wonder if the 9:40 a.m. reversal was a computer generated/Ai move given that it happened at exactly 9:30 a.m. So now what? Let's look at the current chart above and think about whether or not we want to buy the Puts to catch what looks like to be a fall. Here is one series to consider. At 10:18 a.m. wo...

If it jumped this much can you purchase a Put $8.69 "out-of-the-money" at 10:09 a.m. shown below that expires tomorrow in the hopes that some of the froth comes out of this stock? How do you jump in to play the downside with any confidence? Is a reversal imminent? It becomes a question of waiting it out to see when it tops out. There are other stocks we can look at for guidance in what to expect. The entire trading community has their eyes on this situation. When G.M. had an earnings report release back about three weeks ago the stock jumped something like four or five dollars and then hung in at that higher level for an extended period of time. Here is a chart showing that situation. Once Deere stops going up is it going to linger sideways for a while? Probably not. It's not like the company suddenly discovered gold. They make tractors. It's kind of a boring business. Let's find out. It's now noon. Suprisingly Caterpillar is not jumping up in sympathy. W...

Lets start with this. A five day look at it's chart. Just over $14.00 at the start of last week to end just down under $12.00 at the end. Is anything bad with the company happening? Now this. An open interest of only 17 as of of Friday. Let's fast forward to February 19th. Here are other drone stocks to watch. They all seem to go up and down together. .. .. .. .. .. Options on ten dollar stocks are difficult to play and it gets more difficult when they are drone stocks. Dragonfly is a Canadian company and I live in Canada so this is one I follow. Here is it's one year chart. It's dangerous with a book value of only $.85 cents per share. Do your own homework. A January 10, 2027 Call will cost you $3.40. Here is how much they cost on the next day. Yes there are traders who find value in this proposition. Options like this scare me. Here is how the Febuary 20th 12 series of Calls on Unusual Machines closed the day. Notice the $1.75 price up from $.85 a few days ag...

Let's start with this chart. Tesla is stuttering after the opening. Here are how one series of Calls are trading. What you need to know is that these are Call options which expire today, on a Wednesday which are not the usual Friday expiring options I commonly follow. Who would be bold enough to be playing "last-day-to-expiring" options? Next, Tesla at 1:42 p.m. ... Now a different look at the same action. So at 11:08 a.m. thirty three minutes after we first started looking at them they jumped up to $4.50 per contract and at 1.04 p.m. they jumped up to $4.33. These are impressive gains. Now this at 3:00 p.m.. . These Call options have run out of time. 3:00 p.m. is deadline for when retail traders have to be out of their positions. Tesla can sometimes jump $25.00 in one day. I get it as to why there is a fascination for one day option trading on Tesla, especially when the DJIA trades so erratically on a "hour-to-hour" basis. With this kind of trading you h...