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Showing posts from January, 2022

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Short Term Options On A Volatile $5.00 Stock.

Wednesdays in the world of option trading can be days for market resets. This is the third blog I have done on this stock Big Bear Ai. Reference my first blog of November 18th blog if you wish. Here is how I introduced the stock back then. The stock seems to trades millions of shares each day. It's options have good liquidity. Here is it's five day chart. Now it's morning chart. The markets aren't doing very much. Now here are this weeks Call options, (well one series of Call options) are doing. . Can you see at how at 11.06 a.m. they are starting to move up? Now the closing day readings. Just get out. To make trades like this work the stars have to be lined up right. Read my past two blogs on this stock. With all the Ai trading why isn't the volume of options traded way higher?
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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...
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