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Deere and Caterpillar End of the Week Profit Taking

Thirty five minutes into the trading action and here is what is happening. The 400 series of Puts on it are up 367%. The 405 puts are up 920%. They closed the previous day at .51 cents. Volumes of trading are light. Traders are not taught to trade in one day options and for all the hype about Ai trading no inroads have being made in this regard which is something I find strange. What value has Trump added to these two stocks this week? None really. So why such extreme forward looking thinkings? It's 10:28 a.m. so we are still in the first hour of trading. These options expire at 3:30 p.m. so there is still four hours of trading life in them and the Djia is up 239 points. Is it now time to catch a rebound? Maybe. Well maybe only to those traders who caught the selloff and profited this morning. Yet then again one would be fighting thinnly traded Calls and Puts both on the buy side and on the sell side. In other words you would have to buy something a little bit closer to the as

The Hurricane - An Avis Option Trade

Last week I did a blog about a little trade on I did on "Home Depot" hurricane news. A second tradable trade presented itself this morning that in hindsight was easy to predict. Last week we all witnessed the carange of cars and boats being destroyed by rising sea levels. Thousands of cars where destroyed. One of the things this means is that Florida instantly needs thousands of rental cars. That's good news for Avis, right? I would think so except for the fact that they too lost vehicles. Here is a look at how Avis traded last week up until Thursday morning. Avis is a company I have never traded before. With the high demand for used cars these days it is not a situation I feel comfortable trying to outguess. This stock made some nice moves upwards last week.
Today is Monday. Doesn't it stand to reason that over the weekend tens of millions of people got to watch news clips on t.v. of the damage incurred? The following chart shows the lift Avis got on the first few minutes of trading this morning. In hindsight we all should have bought Call options on Avis at 3:59:57 p.m. last Friday.
Also now shown is how Avis traded on the day last Friday. Do you see how late in the day profit takers caused the stock to take a slight dip just before the closing bell?
Ps. Here is something I did on Friday (the DJI sold off 500 points on the day) in anticipation of a Monday morning rally. I try not to hang onto positions for to long with short term options. I purchased at around 2 p.m. one contract at $154.00 on Caterpillar that expires this week.
I didn't stay in this position very long. I stayed in it for just less than ten minutes on the opening this morning. The reason I got out so quickly was that I also bought a Boeing Call near the close on Friday so I wanted to lock in as early as possible one profitable trade. Doing so would offer protection just in case the Boeing Call option position started to go south. I got out at $310.00 after buying in at $154.00.That's a double.

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