What To Focus On - Part Two

My blog of November 27th was entitled "What to Focus On". Please read it. This week we are feeling a bit of a hangover. Last's weeks triple witching event is over. Stocks that were forced to contract in price to sqeeze out spectatate positions on them are now free to resume there old trading patterns. This Monday morning at 10:20 a.m. the Djia is up 301 points. There are also losers. So now what? Mark on your calendar exactly three months down the road how the markets traded on the first morning after one of these triple witching events and use this same logic to catch the upside on the next "hangeover" day like this. How do you pick the winners? Find a few stocks that have enjoyed a recent upswing and play them to pop on the first trading session after one of these events. This blog is just an observation.

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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