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Caterpillar Drops $60.00 In Five Days - Noon On A Wednesday

In past blogs I have mentioned how light the volume of trading is in Caterpillar options. Trading them is a challenge. Deere options are also like this. Caterpillar can and does (in recent times) swing $10.00 on any given day. It is noon on a Wednesday and this the one day of the week where you can look for reversals on "one-week" options expiring on Friday. I have talked about this many times before. Here are it's five and one day charts. Now a look at two of it's Call option series. The 560 series actually offer excellent value given how large it's morning drop was. Who cares to check the news on it? When it drops this much this quickly the bad news, if any, is already baked into the equastion. Now the second series of Call options I am showing you are $44.00 "out-of-the-money" and expire in 2.5 days. "Out-of-the-money" Calls to this extreme are a speciailty item. In layman's terms they are a longshots. They can be excellent trading veh...
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The Future of Ford. Short Term It Is Not Good

There is news! The stock is jumping.
Look at todays volume of trading as of 2:00 p.m. The average daily volume is around 59 million shares. What a vote of confidence!
Anyone holding Ford Call options has been rewarded.
Is it clear sailing going forward? It should be for the next few months as Ford revels in this glory. But wait, is this all talk and no action. How long will it take to build these new facitities and what will the E.V. marketplace look like three or four years do the road? This good news report may turn sour quickly as Ford is losing money on on each electric vehicle they sell. That's the problem built into this situation. In the short and mid term, things do not look good. Stay away or buy Puts.

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