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Caterpillar And Deere Calls And Puts Have Become Octopuses

Traders are now afraid to trade them and rightly so. Look at how low the open interest in the slighty "in-the-money" Caterpillar Call and Put options are going into todays trading session. An open interest of only 52 and 72 contracts. It's the same thing for Deere. ....... This time open interest numbers of only 71 in one series of slightly "in-the-money" Call options and only 20 in the Puts. Now their five day charts. Note the $20.00 drop in Deere in one day. Moves like this can sometimes happen quickly. With all this information we can now move forward. Look at how the Call options traded on these two stocks on Wednesday morning. After looking at them a few comments can be made. ... These initial gains of 46% and 21% are somewhat impressive. As the morning progressed the gains only got larger. Let's now look at the Caterpillar Call options at 12:49 p.m. The stock is up $9.68 and the Call option we are following are now up over 80%. ........... Wh...
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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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