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Netflix And It's Ten For One Reverse Stock Split

No longer is Netflix a $1,000 stock. Now the common man can buy it. That's the new logic. Today Netflix is now trading after a "ten-for-one-reverse-stock-split". Netflix was up $8.51 last week when it was trading at it's old level of over $1,000 per share. Perhaps the street was buying in last week on the hopes that a new wave of buyers will be buying in at this weeks newly adjusted price. Now this, it's five day chart. Now this weeks Call and Put options an hour or so into the opening markets.. Whatever happens it's not going to be a comfortable ride. Maybe it could go both ways. Now it's end of day readings. ..... ..... Here is how the markets closed the day. The now current question is which way will this stock trade on an upward day? One unusual factor is that the open interest in the Puts far outweighs the open interest in the Calls. To me that's counter intuitive. To me that looks like trap for all the Put holders. Usually there are more Cal...
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An Example of Call Options on Caterpillar Prior to an Earnings Release

Not all retail option traders are up to the challenge. What am I talking about? Caterpillar Calls just before an earnings release.This is a blogging site about Caterpillar Calls and Caterpillar Puts. The stock could have a huge jump if the earnings beat expectations or investors could be worried a recession looms. Look at both Caterpillars thirty day and five day charts.
Now look at what the 262.50 Calls are priced at which expire at the end of the week (August 4th).
Very few option traders are playing them. Normal in my opinion should be over 1,000 contracts in a series like this trading everyday and a few thousand open interest contracts. With global warming more heavy equipment will always be needed to rebuild our roads and bridges getting washed away by floods. That plus Caterpillar recently come to terms on their contract talks and supply chain issues are getting better. Did you see how Boeing jumped in price on it's earning report a few days back? Caterpillar could jump too. Here is Boeing's chart in reaction to it's earnings report.
These 262.50 Calls cost about $500.00 a contract to purchase which is to rich for many option players to buy into. I get that. I also understand that the stock is already up over $20.00 in the last month so some shareholders may be thinking of selling out on the release of good news. Looking at Boeing once again look at the open interest on it's slightly "out-of-the money" Calls that are to expire in five trading days. That to me is a normal volume of trading.
Why is there so much caution in the air? One reason is that if Caterpillar jumped five dollars on good news that wouldn't move the needle on it's Call options all that much. Maybe a 50 or 60% gain. Built into the options price is five days of time value which makes them somewhat expensive. What do I expect? I expect a gain. **August 1st. Here is their earnings report.
Let's check back in a day or two to see how the needle moved on this stock. It jumped. The 262.50 Calls were up over 400%.
Wow. It was a crazy gain. Now part two. Let's go on a few days to see what is happening.
Here now is how it finished out the week.
Timing was everything.

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