CAT Puts

Caterpillar is in a sweet spot with the world being in a mess. Floods, wars and the digging for minerals. The world is now being exploited at full speed. Caterpillar is there to assist. Here is what happened with Caterpillar's stock price on the day of it's release of it's last earning report on April 27th 2023. W Why did this happen? Well look at this year to date chart and look at where Caterpillar was at three months into the year. It was a prelude to a sixty dollar bounce. Why did it shiver on the initial announcement of the news? To be blunt, it was pretty stupid for this stock to be struggling on good news. Let's now go back to the earning reports on Caterpillar at the start of the year, released January 31st for the end of the previous 4th quarter of 2022. Look at the wildly optimistic guidance. The range of expected sales was somewhat irresponsible. The stock ended up struggling for the next three months based partly on this strong but vague guidance. Are you...

Option traders wait for days like this. Earning reports can cause stocks to spike. Let's look at Boeing and General Dynamics Corp.. First Boeing. Here is it's news. The company can't build planes fast enough. The stock surged on the opening only to have opportunistic traders take some of the wind out of their sails. There was a lot of details to absorb in a short period of time causing the stock to quiver. Sometimes Boeing can jump 15 dollars on good earning reports. Now look at this one day chart. The lesson here is to take profits on the opening. Period. Things re not totally smooth sailing with Boeing. Taking profits and buying back in on the morning dip and selling out into the ensuing rally would really require luck. Next General Dynamics Corp.. Guess what? We are living in world of serious wars. Business has to be good for this company. The details of how they are doing is not that important. Wars are good for General Dynamics and with the markets taking a grubbin...

Quebec is going full force on trying to go electric. Read these two clips. Now this. If you don't know about the company they make electric snowmobiles and electric jet skis. Yes or no. Would you invest in them and is this a good time to be making such a decision? Well the 15 million they recently raised isn't that much money to run a factory for any lenght of time. Then again, the Government isn't going to cry if they don't get their money back. It looks good on paper to be adding skilled jobs to their labor force. In the spring Taiga issued 43 million dollars in 10% interest convertable bonds. Ouch. They now have to crank up their production number just to pay the interest on these bonds. So many issues are now apparent. The good news is they now finally have two product lines to sell in the recreational vehicle segment of the marketplace. However their research and development costs continue . Do people have money to buy these types of toys? What happens to th...

Livewire is the product of Harley Davidson merging its electric bike division with a special-purpose acquiston company. Doing this pulled in new start up capital. That was a good plan. Grab some money when the appetite for new issues was strong. New money willing to chase the Livewire dream. A third quarter earnings report comes out for Harley Davidos/Livewire on Oct.26th. What's next? Well, who wants to purchase an electric bike in either the near term or in the mid-term? It has "range bound" issues. It doesn't go very far before it needs recharging. So it's a double whammy. If you wait a few years you could buy one for a little bit less money as their prices keep coming down and get a newer model with more distance. Right now it's not like you can pick one up at your local Harley Davidson store and drive it 500 miles out into the country to go camping. Livewire tanked during it's first year of trading. Early production numbers were very small (and cont...

It happened with no warning. It just dropped for no reason. Early in the morning it dropped and then stopped and looked like it wanted to make a rebound. Then it sold off further. The company announced one employee of twenty years or so was being given a new position. That's the only news I could find on it. The following day, stories emerged about how other stocks in their sector had problems. Caterpillar is a company with relativey few news releases and that's why many options players like to trade them. In their earning reports they compare their profits and losses in all parts of the world they operate in. Investors like to see that. Today was different and the stock just dropped. A thirty day chart shows how that it was possible. Now what? Earnings come out in about two weeks and they are expected to be better. Our world is being torn apart and the equipment Caterpillar makes to rebuild our planet is in high demand. Caterpillar is also the kind of company that can pass ...