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Young People And Options

Let me spill out some information. Next-Generation Investors Are Different. An organization called "Finra" published this information. In a 2021 survey the Finra Investor Education Foundation found that 36% of respondents aged 18 t0 34 said they have traded options. That compares with 21% of respondents ages 35 to 54 and just 8% of respondents age 55 and older. Then there are crypto investors. According to something called a Pew Research survey based on Feb 2024 data, 42% of men aged 18-29 have invested in, traded, or used cryptocurrency compared with 17% of women in the same age range. Interestly, just 17% of all adults say they have invested in, traded, or used a cryptocurrency, according to the same 2024 survey. When it comes to buying on margin,in 2021, just under of a quarter, or 23%, of investors ages 18 to 34 said they have made purcheses on margin, compared with 12% of respondents aged 34 to 54 and 3% of respondents age 55 and older. Opening accounts is now easier and...

Caterpillar, John Deere and Boeing. A Shakeout This Week.

Let's start with their one week charts.
A bad week to be playing Call options. Tomorrow Friday is a holiday so this weeks options expired today. Here is how Boeing traded on the day.
A reward for traders who were glued to their screens all week. Look at how at around 1:00 p.m. the 210 Calls and 212.50 "out-of-the-money" Calls popped.
In around 11:30 a.m. at .11 cents and out at 1:30 p.m. at $2.40. The 212.50 Calls were even more extreme. In at 11:30 a.m. for one dollar a contract and out at sixty-five dollars a contract.
Look at the Call volume. If you were glued to watching Boeing at that particular time you could have caught some of this action. In contrast look at this. Look at how the Caterpillar Calls were trading around 2:00 p.m. in the afternoon. Options on the last day of week that are expired have the rule that you must be out at 3:00 p.m. and not 4:00 p.m. Look at this one day chart at that particular time period.
Now look at this.
An open interest of only 37 contracts going into the day when often times that number is like 5,000. Caterpillar got grubbled all week and few traders were willing to play the upside. Here is how these Calls closed out the day and first here is how the D.J.I. closed out the day. Up 2 points.
Here it is. There was a bit of a rally from 2:06 p.m.to 2:30 p.m. and the above Calls would have went up about 75%. Ultimately however they ended up expiring worthless as also shown below.
Boeing was the trade of the day. Boeing has a constant stream on news being pumped out in contrast to Caterpillar and John Deere. It's the best of these three companies to be playing at times like this, hoping for needed good news.

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