CAT Puts

A credit crunch is happening and Visa should be enthralled in this action. Yet what does that mean for the stock on a day to basis? Not much. Watch last Fridays trading pattern which in many ways was similiar to how Boeing traded last Thursday. That was the subject matter of my last blog. First at look at last weeks five day chart and it's Friday's one day chart. Like my last blog, this is another example of a "purchase on a dip" scenario. Presented now are three different series of Call options all of which expired last Friday. Would you have the guts to be buying Call options on Visa on the dip it had last Friday morning? These were Call options expiring that afternoon. Now look at this. Look at how Visa traded on the following Monday when the DJI charged up. Look at the action on the 222.50 series of Calls. What does this suggest? To me it suggests that there is some trickery to how stocks can be manipulated on Fridays. The trick is in learning how to get onboa...

Is Thursday morning a good time to be looking for reversals? Sometimes. Especially when a stock has a recent history of jumping upwards on a Friday morning. This morning, Boeing sold off thirty minutes after the opening bell in sympathy with the DJI selling off 190 points. Yet it was only off a touch while other stocks got hit harder. If the DJI was to ever do a reversal would this be a good time to get in? That was the question early into the trading sesssion and a 190 point drop on the DJI shows less nervousness than lets say a 300 or 400 point morning drop. Watch this. Now Boeing. Are you able to see it's early morning weakness? Can you see how Boeing went on to top out somewhere around 1:30 p.m.? Here is the smallest of all trades. In at 9:48 a.m. at $52.00 dollars each on two contracts (the 210 Calls) and out at 1:39 p.m. at $145.00. I opted to get out just after the stock crossed over it's previous day's closing. Three points to consider. 1) Read my recent Boein...

One hundred and twenty eight vehicles built in the fourth quarter. Now it's thirty day chart. This story also has a Canadian connection. You decide if you like it. Now Lion Electric. I spoke in the past about a new issue of stock to help raise more money which pulled it's stock price down. Here again is that news. Now for some good news. Oh yes, here is the three year chart. You decide. Are good times ahead for both of these companies? A March 18th 2023 update.

First some background information. The three and one year charts on Boeing and Caterpillar. Now the Caterpillar three and one year chart. Both stocks have had amazing upward moves in the last ninety days. That means playing Calls correct? Look at Friday's Call option action. First Boeing. The 205 Calls surged ten fold on the day. Now Caterpillar. The 245 Calls also surged upwards. Another ten fold increase. With the Caterpillar Calls above one could have purchased ten contracts at $300.00 and sold out at $4,900.00. Let's now look at the one day chart to see how this would be possible. Buying into this position around 9:45 a.m. in hindsight was the time to get in. The following few points might better put all of this into perspective. 1) Commenting on past events of what has just happened is not that difficult to do. It's like going to a rocket launch and describing what just happened. The compelling reason I write about situations like this is because they do happen...