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Tesla And One Of The Busiest Option Games In Town.

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...
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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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