The Dow Up 457 And the Nasdaq Up 460.70

Look at these gains today. Today is a Thursday. Meta is up $18.04, AMD is up $17.49, NVDA is up 110.55, AMZN is up $6.00, ELI lILLY is up 23.75, SUPER MICRO is up $241.52, NETFLIX is up $15.12, COSTCO is up $11.38 AND MODERNA is up $11.85. Gains of $110.55 and $241.52 in one day on two stocks! What's that all about? Well warning bells should be going off. We must be at a short term top. Three stocks stand out to me that are having changing stories. 1) Moderna. 2) Rivian. 3) Lucid In these crazy markets a lot of these stories get buried. Option players in these markets are getting whipsawed and it is getting to be to difficult a market to play in. Once this final round of earning reports are over things should get back to normal.

"Caterpillar Calls" and a Thursday Morning Bounce"

Does playing "Caterpillar" options on Tuesdays ,Wednesdays and Thursdays give you enough time to make money? It can be a little bit scary because your fighting the issue of time values eating away at the cost of your options and you have to get the direction of which way you think the stock is going to go lined up properly. Buying in late in the day looking for morning bounces is one way to play it. I prefer Thursday and Friday plays on "Caterpillar". This week on Tuesday I purchased both the 237.50 series of Calls on "Caterpillar' and the 240 series of Calls. On Wednesday I was down 30% on my investment from the previous days purchases and on Thurday morning there was a bounce on the opening. I got out.
This little prinout says sell one contract, the 237.50 contract at $5.27 at 9:40.a.m. On the buy side I bought in on Tuesday at 3:47 p.m. and paid $2.22. Here is the ticket and here is another chart showing the bounce. ( My 240 Calls did equally as well, I bought the 237.50 contract as insurance after the 240 Calls were starting to disappoint on Tuesday).
How did I pick my exit point of 9:40 a.m.? That's always the really difficult part I struggle with and more often than not I get out to soon. In this case can you see how a second buying opportunity presented itself later in the afternoon. Why do I like "Caterpillar" Call and Put options? One of the reasons is that seldom does this stock have news releases. That's to me is a good thing.


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