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Caterpillar Cracks $1,000.00 Per Share. History In The Making.

How did this stock get this high? What happened to the worries last summer that tariffs rising raw material would crush their bottom line? What happened to the worries that management commented on during their last few quarterly profit reports. Now look at Caterpillars five day chart. Caterpillar reached the $1,000.00 per share mark for the very first time. Yesterday the stock had a powerful one day surge upwards. Are some people now thinking that the stock could move even higher?. Think about this. Other stocks have also recently reached this threshold. Let's look at a three year chart on Costco to see what it's stock did after reaching the $1,000.00 dollar level for the very first time. Between January 29th and February 3th in 2024 the stock went from $979.00 to $1,022. Then on February 13th it reached $1,072.00 to only then fall back to $927.00 on March 12th. These are big numbers flying around. Let's move on to Eli Lilly and visit it's "reaching the $1,000....
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Toyota

Very few option contracts trade on Toyota. I have wondered why and offer one potential explanation. It's listed on multiple exchanges around the world and "option makers" in North America are basically just following the action. If the markets open stronger in North America that means Toyota traded stronger overnight on markets overseas. Secondly, the Calls and Puts trade in incriments of five dollars.There are for example 135 Calls, 140 Calls, 145 Calls. Having a five dollar spread wipes out the incentive try to daytrade option series which are soon to expire. If the stock moves from 142 to 143 the "bids and asks" on a 140 series of Calls might hardly change. It's not like trading the stock like Boeing where you can get in and out with option series set up in increments of $2.50 . Here is it's one month charts. The company now has a new C.E.O who is getting criticized for not moving to go electric quickly enough.
What I am now about to show you might discredit some of my above points. It's a five day chart on Toyota and look how all the action seems to happen on the opening. Why? It's the effect of overnight trading on other markets. Our North American trading follows Toyota's overseas market trading.
Now back to my point of how contracts trade. A volume of three and twelve contracts in the 140 Calls and Puts series that expire soon. Look at how wide apart the "bids and asks" are and how low the outstanding number of open contracts are. It's crazy.
Toyota is a great company. It's just not one that attracts option players.

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