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A Jumpy Week For Caterpillar - A Week With Earning Reports

Here is Thursday's trading on the day on Caterpillar. Here is how the $417.50 calls that expire tomorrow closed the day. Something happened this week. Caterpillar had a quarterly earning report come out on Tuesday. It's stock trading action survived this news unscathed. Here is it's five day chart as of the end of Thursday. Maybe the 420.00 or the 422.50 series Calls are better to look at? Here they are. But wait. Deere got clobbered today on the release of a quarterly earning's report. Why didn't Caterpillar sell off in price in sympathy? It shoud have. Deere sold off $34.70. For this reason alone I would be more inclined to purshase the Puts. Here is the series I would consider. To be continued.
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A "Cat" Suprise On A Friday And A Mention of "Rivian" The Most Actively Traded Stock By Share Volume On The Week On The Nasdaq

It happened. A friday rally on the stock Caterpillar. See the chart.
So 15 minutes into the trading session and Caterpillar is up just over 1 dollar. Look at the spread on the bid and ask on these slighty "out-of-the money Calls". If you want to buy them just below the asking price the bid and ask will usually be bumped up. If your waiting for a fill and you are somewhere with a bid between the bid and ask waiting for a fill which doesn't seem to be happening you can cancel your order and then resubmit in to see if that works. It might.In these early moments of market trading on a Friday morning no one really knows what to expect. These are once again Call options that expire at the end of the trading session. Well it's actually 3:00 p.m. when you have to close out your positions. That a special rule they impose on options that expire on that day. Now shown is how these same Calls closed out the day. Can you see how high these Calls jumped at one point in the day?
Now it's five day chart.
Look at how the chart had a "U" formation going into Friday morning. Once it started to shot up there was no turning back. With charts like this it makes for pretty exciting action. One strategy I eluded in recent blogs is to put in buy orders at low prices on Friday morning one day options and hope for miracle fills in the premarket.It can happen in the premarket jitters. Most option traders stay away from short term options like this. Maybe they wouldn't if they read more blogs like this. *** Rivian was another Call option outperformer on Friday.
All of the Call options on this stock with different striking prices did well. Read my recent previous blog on it. Rivian announced a 50% quarter-over-quarter jump in units made and sold. It was up $8.04 cents on the week and was the Nasdaq most activity traded stock by share volume. Nio, another electric car company I often mention was the most activety traded stock on the NYSE by share volume. Tesla gained another $12.66 on the week. They delivered 466,000 units in the June quarter - 5% more than expected. That's huge.

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