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The Appetite For Caterpillar Options Going Into An Earning's Report Is Quite Small .

Let's start with this. Caterpillar has an earnings report coming out on April 30th. You should listen to it. It's not going to be difficult to find. Now look at these how these two series of options closed out the week. The Calls are just "in-the-money" and the Puts are just slightly "out-of-the-money".The cost to play the upside with one week options almost equals what it costs to play the downside. That's kind of strange as usually the Calls cost more to purchase than the Puts. Both are super expensive however Caterpillar as of late can jump $15.00 or $20.00 dollars in one day. When I say super expensive what do I mean? 2,690 means $2,690 Americian per contract. That is not chump change. You would have to have a very strong conviction it was going to move one way or another before you would want to jump in. Yet there is bigger problem. The current price of the stock is in a nose bleeding territory. Look at it's one year chart. Is it really doing ...
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Caterpillar Earning Report Plays

So tomorrow is the big day when Caterpillar releases it's second quarter earnings report. It is expected to be good. Boeing just had a great earnings report yesterday and analyst are expecting Caterpillar to also report decent numbers. Let's look at the five day trading charts on these two companies and this mornings super strong premarket indicators. (It's always good to be selling into strong premarket indicators because history tells us that they never stay strong forever). It's July 29th and Caterpillar's earning report is tomorrow.
Ford also just had their earning reports and good new also on that front.
So far so good? Good news everywhere right? It's only good news if you can capitalize on it. What am I implying? Well I don't want to digress to far off topic however option trading can be an exacerbating experience. I missed the Boeing and Ford trading opportunites despite the fact that I anticipated both of these two companies would do well. Do I beat myself up for not playing them? Not really. Playing the earning report game is never a sure thing. Sometimes the numbers can look good and the stock will drop. So where now do I want to go with this blog? I want to focus on the importance of seizing the moment and capitalizing on this morning's unique sweet spot. First, it's a Thursday morning and Caterpillars earning reports are still one day away. We are looking at the premarkets at 9:17 a.m. and we see Caterpillar's premarket price trading at $213.90 up $2.46. If you purchaed Caterpillar Call on Wednesday at a lower price why wait for the potential earnings report play on Friday to get out? Other computer generated trading platforms looking for short term profits are going to be selling out into any strenght of a Thursday morning the opening markets. Look at the $6.33 number on the Call options in the first few minutes of trading on the July 21st 210 Calls. Look then at how they dipped and rebounded back up at 11:46 a.m. Are you able to see how a second buying opportunity presented itself around 9:30 a.m.? Once again, all of this action was in anticipiation of a good news report on the following day which no one was entirely sure would happen.
** It takes work to get pumped up every morning to play this kind of game but if you follow Ford, Caterpillar and Boeing concurrently you will know that their earning reports come out all near the same time. For a few days in a row you will have to watch the markets with extra attention.

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