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What Happens When You Get Four Stocks All In The Same Sector Going Up In One Day On A Monday?

First of all it usually means something good is going to happen in the sector. It doesn't really matter what it is or why. This time it's in a sector we can call "used vehicle car sales". Some option traders trade exclusively in this sector as you sometimes see blocks of 20, 25 or 50 contracts trade at one time. Well, not so much as of late. It's big "retail-money" or trades made by wealthy individuals. Why spend millions of dollars building up a car dealership empire when you can follow and profit from what is happening in the industry just playing stocks and options on it in the right direction? That plus the advantage being able to take holidays when ever you want. Here they are. 1) NOW HERE IS A CHART OF CARVANNA. I have done recent blogs on this one. Here is it's five day chart. Is everyone hoping for interest rates cuts? (Jerome-Powell-Jackson-Hole Annual Summit) to come later this week, just another speech by some old man). If rate cuts star...
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Deere, A New Problem

Good morning to the markets on Nov 22nd 2023.
Read the news. Might this stock dip further?
So guess what? Caterpillar dropped in sympathy with this news.
Now what? Income was up 43% in fiscal 2023. That's an amazing accomplishment. Did they upset the apple cart in shouting out their guidance for next year? Their new 2024 projections have a shock value to them and will take some time to digest. But wait, here is a new way to look at it. If the stock starts to go sideways over the next couple of months every tidbit of new news with be an event to celebrate. What a clever way to throw cold water on a hot earning report. PART TWO OF THIS BLOG. What's going to happen to this weeks Call options? Will traders now start to jump back in? Here is how the Call options are now set up. First the Calls with a $360.00 striking price that expire this Friday which is two days away. * the markets are closed Thursday for Thanksgiving.
Now the Calls with a $360.00 striking price one week out.
Check back later to see how this weeks action played itself out. What do you think might happen? Here is what happened. Here are these two Call positions after the market closed on Friday.
Now next weeks Call with the same striking price.
Now here is what Deere did on the week to make this happen.
What now are my thougths? The stock retraced half of it's loss in a day or two. That was expected. Deere is a company not big on news releases. Not many option traders pay options on it because they are expensive. The stock tends to have directional moves which often last for ten, twenty or thirty days. With rising population counts and the continous need for more food this stock is in a comfortable position. The stock dropped on the opening on the day of the release of it's earning report. Thirty minutes into the trading session turned out to be the best time to be buying into it's rebound. It doesn't always happen like this, sometmes it takes more time to shrug off news of any type. It now could be taking a breather so maybe it's best to find something else to watch.

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