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Caterpillar Calls. Trying To Make It Simple

So if you like the stock Caterpillar and want to play the upside on it using options you could buy these ones. But why would you? They are up 46% on the day so the real money was made in buying them yesterday and selling them today. The stock would now have to go up about $25.00 in one month just to break even and everything above that price would be profits. If you now look at a thirty day chart you will see that's what it did last month. These are "one month-out" options which are ten dollars "in-the-money" and they trade in a different fashion than short term options. Yet that not what I want to talk about. I note that only 13 contracts traded on this series on the day and the open interest in them stands at only 11. What does this tell us? 1) It tells us that professional money managers are totally lacking in their understandings of the dynamics of option trading. 2) It tells us that retails traders are to some degree misguided by the learning materials ma...
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A Four Minute Intro to Nio

Last week Ford was the second most active stock traded on the NYSE by share volume. It closed at $17.83, down 1.2% on the week. Nio was the fourth most active stock traded on the NYSE by share volume.That's an accomplishment in itself. It closed at $20.94 down 9.8%. Here is a picture of one of the electric cars it races. It is the fastest electric car in the world.
Here now is some company news.
Now let's look at it's trading history starting with a three year chart and followed by a one year chart and then finally a one week chart.
Might this stock, and Ford start to rebound back up in the first quarter of this year? It's chart isn't particularly attractive but the story behind the chart seems to be good. The stock's price got ahead of itself. I will be tracking the Call and Put options on it this week. *** I am not a fan of purchasing Calls or Puts with one week to go on stocks in the 20 price range. The premiums are to high with only five trading days to go. Tuesdays or Wednesdays are usually better to play the swings in conjunction with what the indexes are doing. Here now is a look at the Nio 20 series of Calls and Nio 20 series of Puts going into the opening on Monday morning. When playing these options one should be looking for short term swings and the near constant danger is that the stock might move a dollar putting you in a position which then goes offside and then never comes back again.
The liquidity in these options is excellent. A Monday update. It's up.
Now here is how the stock end the day (a Monday) and here is a look at the twenty series of Calls and Puts.
The Calls doubled in price in one day and the Puts lost 2/3ths of their value. All on a down day. This is the action that I am talking about.

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