CAT Puts

Ok, so yesterday, a Thursday I looked at Ford because management was in the news saying they are going to stop taking more preorders on their upcoming F150 electric truck. They have too many orders. They were also saying look out world - we are going electric. V.W. and Toyota were also making similiar claims. Here is a look at Ford at 12:11 p.m. today. At noon Ford was up 5.6% and their short term options which expire today were up ten fold. Stocks the size of Ford seldom jump that much in one morning. Why didn't lightbulbs go off in my head yesterday saying lets take a flyer on Ford Call options for tomorrow with one day's trading life left in them? That would be the Dec 10th 20 Calls. As you can see, the 20 Calls this morning went from .06 or six dollars a contract to .61 or sixty one dollars a contract at noon! Then looked at how they ended up the day. A .06 or six dollar contract would be worth one hundred and forty three dollars! A six hundred dollar investment would be ...

Ford is going electric, that's the buzz. We all know the story. Earnings just came out on the stock and the Call options jumped on the opening. If you were playing options you had to get out just after the opening. With option plays on earning reports that's usually the way to best way play them. First, I will show the prior day's action. There was a gap down on the opening and 94 million shares traded. That's a large number. People were cashing out after recent good times. Now here is a chart of Ford the next day and here is how two option series traded. Buy in at the close and sell out just after the opening. Look at how high each series traded up to just after the opening. The earning numbers were not all that great but it's the buzz about going electric. Ford is one of the better stocks out there to play earning report releases. ** Scroll up to the upper left and read my most recent blog on MacDonald's earning report.

I was sitting in the drive through line yesterday at McDonalds redeeming a free coffee sticker won from being there a few days prior. It was a long line up for mid-afternoon. I am not a fast food junkie. I found myself thinking of how the Domino Pizza stock was on a terror for much of last year but not so much now. When we were all locked in last year everyone was ordering their pizza. I was also wondered if they would now accept my little free coffee sticker as it was only thumbnail size. Then when I pulled up to the drive thru window I hit a patch of bees. Apparently for whatever reason they were enjoying being at that window. They gave me my free coffee. Boy it was busy there. I note in this option series that there were only 292 open contracts. That small number suprises me. Why didn't more option players see this coming?

Aurina Pharmecetical Inc. I have talked about this one before. It has a Canadian history. Here is the news on it late last Friday in the last few miutes of trading and here is how the stock reacted. It closed the trading session at $28.00. Today is Monday Oct.25th and my comments are after the fact comments. I have being playing this stock for years as have some of my friends. I missed the news of this happening when it happened. What a day of the week and what a time of the day for such an announcement of that magnitude! Retail Call option holders have to be out of their Call option positions that expire on a Friday by 3:00 p.m. or they run the risk of their brokerage houses selling them out. Option trading desks play by different rules. Image all the then "just-out-of-the money" Call positions, the 26, 27, 28 calls that would be trading for .03, or 04 or .05 cents a contract around 3:35 or 3:45 p.m. on that Friday. Suddenly they would be worth 100 or 200 or 300 hundred fo...

Yesterday I posted a blog called Ford 14 Calls. Please read it to better put this blog into perspective. Here is the action this morning.Call it the perfect storm. $500.00 in to like $4,400.00 in 90 minutes of trading. Why did this happen this way? Well these option expired this day so if your buying in at 9:32 a.m. you only have a matter of hours to get it right. I talked about the Ford 14.5 Calls yesterday and how they exploded up. Today was a continuation of this excess exuberance. Will this occurance repeat itself next week? No. Next week series of Ford 15 Calls will be expensive to buy into because you will be paying for 4 or 5 days of trading time. The kick we saw today was a one time thing. ** Please press the upper left back button to read one of my most recent blogs about the Ford 14.5 Calls.

Ford 14 Calls with only a few days to go. I have talked before about Call option trading on Tuesdays and Wednesdays and I have talked many times about playing Call options on Ford. Look at what is happening. . Ford is basking in a spell of good news. Look also at Ford on the opening last Friday fourteen minutes into the opening. . Contrast this to the time period ten or fifteen years ago when amongst other things they faced rollover issues one model of their trucks. That one issue alone badgered them for many years. Let the good times roll. **** look at the high and low on the 14.5 Ford Calls today. Attention to detail is everything.

The race to go electric can sometimes be expensive and sometimes you have to do unexpected things to keep going. Lordstown has had a rocky ride and announced on Friday afternoon a new partnership. Friday afternoons are the ablsolute worst time of the week to make such announcements if there is a chance investors might reacte negatively to such news. It doesn't give the markets much time to allow this news to sink in. Mondays are better when people are more in a forward thinking mode.That's exactly what happened as you can see from these charts. But first the news. So your taking on a new partner with expertise who also supporting the share price. What's wrong with that? Look at the money they are pouring into this company and isn't time of the essence to get the project closer to the finish line. Will this news eventually end up being viewed as a good thing? How much value do you place on this new companies expertise? It has to be worth something. Here are the January...

Did you read the fine print of my Sept. 27th blog about Zen Graphene Solutions? A newish company making claims to be able to crank up production to fill the demands of a new ingredent used in the production of Covid masks. Click around the internet and find out the number of employees they have. Not many. Their new partner is not a listed company. Why are they talking about an estimated capacity to coat the equivant of 800 million masks per month? That many, really? In a similiar sort of way, in my Sept. 16th blog I talked about Limestone Boats and their claims to be able to crank out 550 boats next year. A picture in that blog shows their first two boats being shipped out for motors and sea testing. Without a track record of making boats this year how can they justify such a number? Then there is Odd Burger. I talked about this stock on September 6th with plans to open 20 restaurants next year. How did they pick the number twenty? Why not ten? How do you plan for twenty when you curre...

There is news! The stock is jumping. Look at todays volume of trading as of 2:00 p.m. The average daily volume is around 59 million shares. What a vote of confidence! Anyone holding Ford Call options has been rewarded. Is it clear sailing going forward? It should be for the next few months as Ford revels in this glory. But wait, this is all tall and no action. Where does all the money come from to make this happen? These sunny days will not last forever.

Do have three or four minutes for a quick read? It might drop back to three dollars or it might go to ten and beyond. This is a feel good, tell your friends about story. The stakes are high playing a stock like this. Do your own homework. ***** For a September 20th corporate presentation go to www.sedar.com and find it under "news releases". I also note. . Ten million dollars or so can now get sucked out of this company and go to management at the expense of new shareholders buying in. A December 2023 update. it has tanked.

Slightly "out-of-the-money" Call or Put options give you the greatest kick with only one day to go. With that in mind look at what was happening to the 222.50 Boeing Calls during the first hour of today's trading. On the opening the stock didn't seem to know which way it wanted to go and markets like this can be very exciting for option plays who want to make a flip in a matter of minutes. They just want to-get-in-and-out and never want to think about it again until next Friday morning at the same time. Getting out an hour later was the name of the game. NOW Lets review this blog. It's saying to put a bid in at the opening on a Friday morning on slightly "out-of-the-money" Calls on Boeing that expire that day. At what price? Well in this case which is extreme (that's what your looking for) it's saying not to have a bid in on the opening but rather a bid in during the premarkets. In this case you would want to have a premarket bid already i...

These blogs are starting to get repetitive. Blogs about Boeing and Caterpillar rising after Monday's meltdown. The DJIA was up today over 500 points and here is how these two companies did. Look at the extremely light volume in both of these two Call option series. What does this tell us? Two things. It tells us about the sophistication level of today's traders. Getting in on a Thursday looking for a one day bounce is not a smart way to trade. Secondly, these are both "in-the-money" postions and the best percentage kicks happen with near-to-the-money options. Let me show you the swings on the 195.00 and 197.50 Caterpillar Calls today. Both were up over 200%. In both of these series the volume of trading exceeded the open interest levels. Out-of-the money postions in near term expiring Calls is where the action is on days that enjoy 500 point rallies.