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The Long Awaited Deere Earning's Report

A few carefully crafted sentences puts to rest all concerns going forward. Read them below. Or do they? What am I talking about? I am talking about managements response to how well they did in their last quarter of operations. The long awaited Deere quarterly earnings report was released this morning. In previous blogs we showed how crazy expensive the Calls and Puts where on it, in anticipation of this news. So it's earnings are now published for all to read. It was announced that profits were down. Management basically says "so what". They also said in a round-about way that they were not going forward to be doing anything much differently. There were no apologies for a poor earnigs report as if it was something to be expected. All of their comments seemed pretty chill. The stock went up. That's a pattern more common as of late. So the Call options go crazy as you can see on the five day chart. Call option holders made money irrespective of how expensive they ini...
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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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