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Showing posts from January, 2022

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Ford. A Chart You Don't See Very Often

Here it is. What's going on? Something must have happened to drop the stock down. How did the "12 series of Calls" and the "11.5 series of Calls" trade on the day? What about the "12 series" of Puts? So what happened? So how did Ford finish out the week? The most obvious trade of this week was to buy Ford Calls on the dip after the release of good news. How hard was that? Yes with patience youu can learn to teach youself how to play short term options.
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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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