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Why Tuesdays Around 11:30 A.M . Are Particularly Unattractive Times To Be Looking At Options That Expire On Friday

So here are nine examples of what the heading is alluding too. Bad times for the most part to be entering into option positions. 1) Tesla. 2) 3) 4) 5) 6) 7) 9) 8) Now the closing reading on these Calls at the end of the trading session. $6.20 is down from $8.03 on Tesla and on First Solar the Calls are $3.10 down from $3.35. Here is what the markets did on the day. So let's continue on. Now Elli Lilly and Caterpillar. Elli Lilly went from $13.40 to $15.65 and Caterpillar went from $3.95 to bid $3.95 and $4.35. Now Biogen. It went from $2.50. down to $1.45. Boeing Calls went from $2.88 to $3.70. In Biogen there were no further option trades on the day with the bid and ask going up towards the closing bell. Walmart couldn't do anything as the effect of this tariff situation is all new. When is food going to cost more? It's Calls went from $.88 dollars to $.75 dollars. Now the last one, Home Depot. $3.80 went to $4.30 So really the markets sold of or went side...
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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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