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Deere and Caterpillar End of the Week Profit Taking

Thirty five minutes into the trading action and here is what is happening. The 400 series of Puts on it are up 367%. The 405 puts are up 920%. They closed the previous day at .51 cents. Volumes of trading are light. Traders are not taught to trade in one day options and for all the hype about Ai trading no inroads have being made in this regard which is something I find strange. What value has Trump added to these two stocks this week? None really. So why such extreme forward looking thinkings? It's 10:28 a.m. so we are still in the first hour of trading. These options expire at 3:30 p.m. so there is still four hours of trading life in them and the Djia is up 239 points. Is it now time to catch a rebound? Maybe. Well maybe only to those traders who caught the selloff and profited this morning. First Deere and it's Calls. Now Caterpillar one day Calls. Lets check back later to see what happens.

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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