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Showing posts from January, 2022

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Boeing Has A Strong Opening And The Game Of Trying To Fight A Strong Stock In A Resilient Market

Look at it's chart. Now how one series of it's options closed the previous day. Now it's ten minute action. Now a 11:00 a.m. question. How do you feel about looking at the downside? Is this going to be the day when the DJIA index jumps 1,000 points? Look at these details. .... Reversals are more likely to happen in the afternoons, not the mornings. I like midweek option trading on stocks in the $225.00 price range. To be continued. Now here we are at 12:59 .p.m. Nothing has really changed. That kind of makes sense because it is exactly a point of middle of the week trading. To be continued. Now a 2:37p.m. update. The NASDAQ is super strong. Getting stuck in this position wasn't the name of the game. The markets were strong on the news of peace with the price of oil coming down. The real winners where the people who got in on the close yesterday who benefited from this morning's bounce. So many of the daily moves now happening are politically induced. This ...

Disappointment on The Opening - Caterpillar Earnings Report

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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...