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Exxon And Why You are Just As Smart As Me On This One.

 Trying to understand why oil prices fluctuate is a job in itself. Look at how Exxon  Mobile is trading. Here is your chance to play with the big boys in some of the most exciting option markets that we have had in a long time. Look at how Exxon  has traded in the last 30 days. These are big swings in a relatively short period of time. That's what helps in keeping the interest in playing options on Exxon so high. Now this. A five day chart on the morning on June 9th, a Monday. Look at the spike it had. Remember in my last blog I showed a spike in Deere only to watch a sell off two days later Now another five day chart, this time Exxon on Tuesday June 10th  around 2:45 .p.m. Look at how the stock is stepping up. Could it drop down to $104.50?  The chart shows that it could. I like Puts more than I like Calls in general because for lack of better words they are more unpredictable. Now this, a look at yesterday's action. We are looking at the 105 Puts. This shows h...
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Boeing and Caterpillar

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.

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