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Caterpillar Jumps On The Opening

Can you fight it? ... Why would you want to? It's not like the Stellantis opportunity we had on Monday morning. Is the stock running out of momentum? Now this less than an hour later. Caterpillar takes a hit. When Caterpillar goes up $30.00 in fourteen minutes and you catch it on the downside just take it and run. I will show you below how it closed the day. Now a trading comment. It's difficult to fight rising stocks and in hindsight the answer to Caterpillar's meteoric rise would be in holding it's thirty days Calls purchased in the recent past. Today's situation was a mid week option trade, the day of the week I have often said to be the day of reversals. Caterpillar jumped on no news and Deere just sputtered along. It's largely insituational trading and various analyist are bullish on the stock. If this kind of a jump happened on a Thursday or Friday I wouldn't be trying to play it for the downside. This was a one-off situation, something like t...
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Ford - An Earning Report

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Ford is going electric, that's the buzz. We all know the story. Earnings just came out on the stock and the Call options jumped on the opening. If you were playing options you had to get out just after the opening. With option plays on earning reports that's usually the way to best way play them. First, I will show the prior day's action. There was a gap down on the opening and 94 million shares traded. That's a large number. People were cashing out after recent good times. Now here is a chart of Ford the next day and here is how two option series traded. Buy in at the close and sell out just after the opening. Look at how high each series traded up to just after the opening. The earning numbers were not all that great but it's the buzz about going electric. Ford is one of the better stocks out there to play earning report releases. ** Scroll up to the upper left and read my most recent blog on MacDonald's earning report.
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McDonald's And An Earnings Report

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I was sitting in the drive through line yesterday at McDonalds redeeming a free coffee sticker won from being there a few days prior. It was a long line up for mid-afternoon. I am not a fast food junkie. I found myself thinking of how the Domino Pizza stock was on a terror for much of last year but not so much now. When we were all locked in last year everyone was ordering their pizza. I was also wondered if they would now accept my little free coffee sticker as it was only thumbnail size. Then when I pulled up to the drive thru window I hit a patch of bees. Apparently for whatever reason they were enjoying being at that window. They gave me my free coffee. Boy it was busy there. I note in this option series that there were only 292 open contracts. That small number suprises me. Why didn't more option players see this coming?
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