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Exxon And Why You are Just As Smart As Me On This One.

 Trying to understand why oil prices fluctuate is a game in itself. Look at how Exxon  Mobile is trading. Here is your chance to play with the big boys in some of the most exciting option markets that we have had in a long time. My take on things is that option trading in some instances is following the volatility part of the equation. Look at how Exxon is trading in the last 30 days. Now this. A five day chart on the morning on June 9th, a Monday. Look at the spike it had. Remember in my last blog I showed a spike in Deere only to watch a sell off two days later Now another five day chart, this time Exxon on Tuesday June 10th  around 2:45 .p.m. Look at how the stock is stepping up. Could it drop down to $104.50?  The chart shows that it could. I like Puts more than I like Calls in general because for lack of better words they are trickier. Now this, a look at yesterday's action. We are looking at the 105 Puts. This shows how the 105 Puts which expire this Friday wer...
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Caterpillar Drops on No News

This happens. A stock drops for no reason and then a day or two later viewpoints come out to explain why this has happened. Caterpillar this morning is a case in point.
Here is what the D.J.I. is doing at 10:37 a.m.
Here is how the Caterpillar 285 Calls are doing which expire this Friday. This printout is at 10:32 a.m.
Note they ended up going lower in price after this and went down to $1.78. The best time to have gotten in if you wanted to play a rebound was at 10:46 a.m. which was 14 minutes after the above printout. Timing is everything. Now here is a mid afternoon printout of how Caterpillar is now trading. Note the stock is trying to go sideways.
Here now is what the D.J.I. is doing at 3:06 p.m. It's still not having a good day and there is a good chance it could drop even more before the closing today. When the market struggles like this all day odds are it's not going rebound and if it does it could get knocked down again on the following opening.
If you were a trader you could take a small profit on this trade at this time and just wait for something else to do. I will tell you later how this position closed the day. Guess what! Here is how the day ended.
Day traders can make interesting decisions. A Thursday morning update in the first 45 minutes of trading. Buying in at the 3:59 p.m. plunge was the way to go.

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