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Exxon And Tesla One Week Options

Exxon's five day chart is obviously going in one direction. Last Friday was a strong day for the markets and Exxon jumped up even more. Here we are now on a Monday morning and this week's Call and Put options are priced equally. Which one is going to win? As usual, there is more interest in the Calls than in the Puts. Let's also look at what might happen with Tesla this week. Oct 10th is now touted as being a "make or break day" for Tesla as it will be their "Robo-Taxi-Day". I am not a big fan of trying to play Tesla options with one week to go because their premiums are so expensive. As for Exxon, I would be more inclined to follow the direction of it's recent trend. Let's watch and see what happens. To be continued. 1) Obsevation #1 on a Monday morning. Look at this. Early into the morning trading the Puts have dropped down from the $1.80 level. Can you see how tight the "bids" and "asks" are. This helps to make them pl
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A Four Minute Quick Read on Caterpillar To Help Make You A Better Caterpillar Option Trader

I don't like buying Call options on Monday morning that expire on Friday. I tend to find them to expensive. Something unusual happened this morning. There was an announcement. Here it is.
February 9th was a Thursday. I congratulate Caterpillar for holding off until the Monday after, today to release this news. Can you imagine announcing it last Friday at noon and having short term Call option holders getting wiped out. So what happened on the opening to Caterpillar today? It tanked.
It tanked however it rebounded as the index closed super strong.
Now look at how low the Calls traded on the opening and how they came back. I watched it happen but opted not to play it. They opened at $3.90 and dropped to $285.00 before they jumped up. It's not every Monday the D.J.I. rallies over 376 points.
Two thoughts. 1) Releasing this kind of news on a Monday morning shows shewardship. 2) I opted not to play it. I don't like buying one week Calls on a Monday morning. That's just me.

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