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What To Focus On - Part Two

My blog of November 27th was entitled "What to Focus On". Please read it. This week we are feeling a bit of a hangover. Last's weeks triple witching event is over. Stocks that were forced to contract in price to sqeeze out spectatate positions on them are now free to resume there old trading patterns. This Monday morning at 10:20 a.m. the Djia is up 301 points. There are also losers. So now what? Mark on your calendar exactly three months down the road how the markets traded on the first morning after one of these triple witching events and use this same logic to catch the upside on the next "hangeover" day like this. How do you pick the winners? Find a few stocks that have enjoyed a recent upswing and play them to pop on the first trading session after one of these events. This blog is just an observation.

A Surprise Caterpillar Jump on a Friday That Option Players Missed.

The action on Caterpillar on October 21st, 2022 defies logic. Here is it's five day chart showing Friday's action. Read On.
In the past I have said that it's stupid to be buying Call or Puts just before a Thursday's closing that expire the next day in anticipation of a rally or a sell off that day. The future market was down big time between 8:00a.m. and 9:00a.m. and then the markets opened flat and then took off. Look at how these for series on Caterpillar Calls traded on the day.
$.16 to $510.00
$.05 to $250.00
$.01 to a high of $.67. In hindsite, the tip off to this possibly happening was in the premarkets turning from negative to positive in a short period of time before the opening bell. This kind of action makes it difficult refocus. Now what I didn't show you was the 180 Calls. With the stock trading around 180 on the opening this is the option series you would expect most casual options traders to be playing. Look now at the suprisely low volume of trading on this series of Calls.
Only 146 contracts in this series traded on the day. Why didn't more players jump in?

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