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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. Yet then again one would be fighting thinnly traded Calls and Puts both on the buy side and on the sell side. In other words you would have to buy something a little bit closer to the as

Caterpillar and Livewire

So Caterpillar had a fantastic earnings report two days ago and the stock tanked $16.00. Go figure. Read my previous blog. Here is how the stock is rebounding back up again.
In a recent blog I wrote about "out-of-the-money" Calls on Livewire. I showed what the April 2024 7.5 Calls were trading at.
Given that they are thinly traded one would of had to purchase them by offering close to the asking price. Now read this recent news, Livewire is lowering their prices.
How can a company losing money cut their prices? How can a company losing money have their share price go up? Good questions? Maybe their EV motorcycles were just to expensive to begin with.
Now here is how the 7.5 Calls for April 2024 I talked about on Oct 21st are now trading at.
They are now "in-the-money" by $2.64. Everyone missed the boat on this one. I also note that the 12.5 Calls for April have now attracted some attention.
Trading in options that expire five months out on stocks in the $8.00- $10.00 range can be an extremely lucrative adventure.

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