CAT Puts

Here we are on a Friday morning with the DJIA index down over 1,000 points in the last three days of trading. Short term Puts nearly double everyday. Now look at Tesla's one and five day trading charts. Tesla was bombarded all week about news of autonomous driving. The narrative was relatively upbeat. Now at look at this series of Calls. Might Tesla suprise to the upside on the day? They did on the opening and then they dropped. Now this, how the indexes are doing at 11:15 a.m. They are only a tad better than when we first looked at them. .. Knowing that Friday afternoons can be a rough ride do you take a modest profit and get out? We did afterall miss the low of the day in this option series and part of the mini ensuing rebound. I would. Now this at 1:41 p.m. just under two hours later. The party for these Calls is over. This was a bad week for the markets. A short part two. Can you buy Calls on Tesla at $2:00 p.m. that expire at $3:00 p.m. That's the time of the day thes...

Look at the volume of trading in Caterpillar Calls on a Friday morning on slightly "in-the-money" Calls options twelve minutes into the trading session. These are Call options that expire at 3:00 p.m. today. .. This options are $1.33 "in-the-money" and look at how wildly this stock traded on the previous day. Caterpillar has approximately 465 to 466 million shares outstanding. One would think that there would be thousands of shareholders engaged in "covered Call writing" strategies. Apparently not. The open interest number in these Calls is 27. Why? It's all become to much of crapshoot. That's the reality of our times. The good news is that some traders are still capitalizing on the realities of these crazy times. Case in point are Exxon options. How many more bombs are going to be dropped over the weekend? Look at these Exxon Call options on the opening this morning. .. .. Getting in on Thursday before the close knowing that Friday mornings woul...

So here are four widely followed companies. Let's see how buying two day (Friday) Let's watch the demise of their Call options over the next three days. Trumph is destroying the markets. 1) .. 38.000 contracts have traded. 2) Is Boeing. .... 3) Is Tesla. . . Now Apple. This time with a 4:00 p.m. chart. . Here now is how the indexes closed on the day. The markets remained largely unchanged in the last twenty minutes of trading. These options are down 28%,63%, 53% and 62%. Let's see what tomorrows opening trading will bring. Now Thursday's closing readings. Down 68%, 89%, 93% and 53%. In two days the Tesla Calls for example have gone from a high of $10.80 to $.28 cents. That's what happens when the markets drop 992 points in two days. Friday turned out to be a down day again. Trumps actions are unexplainable. That's the big problem. Option traders, unlike stock traders have the luxury of sitting it out when times get tough.

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 took 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. Here is how the 157.50 Puts closed the day on Tuesday. Now here is Exxon on the close on Wednesday. First it's five day chart. To be continued. Thursday. Fighting strong stocks can be a battle. Here is an opportunity to get back your money. Tomorrow is Friday and Exxon could jump again over the weekend. Here is it's 30 day chart. My point is that the "little fish" can play these options - they jump on a daily basis - no one can control what's going to happen next.