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Caterpillar Up Almost Eight Dollars in The First Hour Of Trading

What's the DJIA doing? How is the chart on Caterpillar? Isn't it true most of us would just stay away and forget thinking about purchasing Puts. Here now are the "near-to-the-money" Puts. Now the further "out-of-the-money" Puts that will only start to reacte with a sell-off of three or four dollars. The volume at this point in time is greater in the "near-to-the-money" Puts however they are both scary from the point of view that there is nothing on the near term horizon to make them change the coarse of their direction they are now on. Early buyers in this morning were hoping for an early morning market reversal. It didn't happen. Now this, about 50 minutes later. The Puts have become more affordable. Caterpillar at 11:35 a.m. keeps inching up. Now a 11:38 a.m. look at the 350 and 345 series of Caterpillar Puts. I like the 345 Puts now in the one dollar range. Here is it's five day cart. I think a Tuesday afternoon dip is possible. Y...
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Deere Calls

On April 7th and 8th.Trading options on Deere on a Friday which expire that day hoping to catch a directional move is tricky business for a variety of reasons. In the very first hour of trading on both of these days the "bids and asks" are often to far apart to even attempt to buy into. There are times however with two days to go until expiracy when it gets a touch easlier to play. Look at what happened for example during the trading session on Thursday April 7th. Let's start with a five day chart. Do you see the dip and rebound on the morning April 7th? A full recovery from a morning like that doesn't happen very often.
What's next? Well here is a closer look at it's one day chart on a Thursday as of 12:22 p.m.. The screen shows a low on the day of $5.37 on the 400 series of Calls and then a rebound to a bid/ask of $10:70 - $13:65. Also notice the super low number of Call options traded. What a rebound! All of this happened before noon. It was playable on its rebound if you were focused and the ride back up was sweet.
So, what's next ?
Now here is the closing recap of the day on the 400 series of Calls. Notice only 26 contracts traded on it and an open interest of only 36 contracts. That's nothing. I often wonder why there are not tens of thousands of day traders dialed into these kind of moves. It is easlier however to play options on stocks like Ford where you can purchase options costing forty or fifty dollars each that are equally as interesting to track.I get that.
Now for day two of this action which takes us to Friday April 8th. Lets start with a look at what's happening with the D.J.I. at 10:08 a.m. It's still to early into the trading session to tell what is going to happen.
So now what? Would it be foolish to try and play it on the upside? It's actually the uncertainty of which way the market is going to move which makes the exercise a game of cat and mouse. It can be rewarding when you can catch the house offside. Yet once again it takes money to play in this game and if you find yourself on the wrong side of the action you lose.
** Look at the bid and ask on the 410 Calls at 10:04 a.m.. Why not split the difference on the "bid-and-ask" and get in around $2.25? Look now at how these Call options were trading at at 11:00 a.m.
That's quite a jump. Look now another time at how the markets ended up closing the day and look at where this series of Call options closed out at.
What a sweet ride one day ride. Here is how the markets closed out the day.
** Scroll up to the top left corner and press the little icon button to read my previous blog.

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