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Caterpillar - Catching A Reversal On A Monday

Mondays are not the best of days to look for reversals however Caterpillar jumped upwards a modest amount which impacted the value of this series of Puts. This is a 1:36 p.m. readout. Here is it's five day chart. Now its one day chart. It would seem like kind of a random thing to do and why fight a strong stock? One reason is that the markets are only mildly up and could give back some of it's gains before the end of the day. Caterpillar could be gaining strenght based on all of last weeks business articles talking about how Caterpillar could potentially gain from this new AI movement. Caterpillar afterall builds heavy equipment which can be used in the construction of nuclear reactors. Notice that the five day chart is in an uptrend and notice the small open interest numbers in the Puts. That's understandable. No one wants to hold Puts on Caterpillar when it is in this uptrend. Could it have a soft selloff in the next two hours? Here it is now 50 minutes later. The...
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Part Two of Why Tesla Is An Easy Stock To Blog About

I will try and make this blog as simple as possible. My question is would you be buying a slightly "out-of-the-money" Call option on Telsa at 3:59:57 p.m. on a Thursday afternoon that expires the next day after the D.J.I. has dropped over 500 hundred points on the day and after Telsa dropped over nine dollars on the day? Has anyone ever asked you that before? Would doing so be out of your comfort zone? As a backdrop to this question you might want to read my last blog. Look at this. It's the one day chart showing how Tesla traded on the day on Friday March 10th, a day when the D.J.I. end up closing down again over 300 points.Talk about rough markets.
After it's previous days demise of over nine dollars a share it actually went up a touch in the morning opening and then drifted sideways for the rest of the day. The "out-of-the-money" 172.50 Calls closed on Thurday (the day before) at $2.97 a contract. Now look at this printout showing how they reached a high of $4.50 in ths first thirty minutes of Friday morning trading.
They actually did go on to reach a high of $590.00 on the day. Here is how this series of Calls traded on the day and then closed.
A recap. In my last blog I said don't buy Call options on Thursday mornings that expire the next day. It's best to wait until the end of the trading day. Tesla Call and Put options are currently the most interesting stock options in the world. Playing them is not like throwing darts at the wall.

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