Posts

Showing posts from January, 2022

Featured

Up Today And Down Tomorrow. A Day Of Peace Talk News.

Let's start with Home Depot and then move on to Caterpillar and Eli Lilly. ... .... ... All three of these series of Puts have two full days of trading life in them. These are not normal times and all three of these series of Puts are attracting next to no interest. Is the U.S. on the hook for all the damages it has created. That's never going to happen. Playing the upside is to expensive and playing the downside on strong stocks is a losing game. Is this upside move now a case of excess exuberance? I think so.
Post a Comment
Read more

Disappointment on The Opening - Caterpillar Earnings Report

Image
Caterpillar's earnings report. What I see is 4th quarter sales up 23%. Strong 4th quarter earnings of $3.71 per share.That's a solid number. Just think, the supply chain issue isn't being used as a mistake. Now look at the the opening options market. The stock is down on the news. Management made a few remarks about near term headwinds. They do that sometimes to temper growth expectations. These two quotes are the 205 Call series which expire today. One is at 9:44 a.m. and one is at 10:03 a.m.. They would be very dangerous to consider purchasing since its very unlikely that they could ever shake off this downward spike so early in the morning. So now what? It's at this time in the morning when the decision to reacte to this bad news gets tricky. The stock is down like ten dollars and the DJI is having a good day. There is a strong tempation to jump in on the upside hoping for a quick reversal. That's one of the things that makes option trading so difficult. One...
Post a Comment
Read more