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Showing posts from January, 2022

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Are Disney Calls Back In The Buy Range?

Here is the chart and the price of one series of it's Calls. Last week we did a blog about Disney Calls. Now at this time, any kind of an upward swing could cause these Calls to double. Yet it's Tuesday and these Calls don't expire until Friday. For lack of better words these options are sloppy options meaning they are "out-of-the-money" options and somewhat susceptible to falling of a cliff if the stock decides to go sideways or down for a day or two. It's not like buying Tesla on the closing hoping for a ten dollar move on the opening and getting it. That's one of the reasons the volume in them is so low. To be continued.

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...