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Deere On Earnings

Here is a look at Deere towards the end of the afternoon after an earnings report. It got beat up pretty bad. What we are now looking at is a printout of one option series which will be expiring the next day were trading towards the end of the trading session. Would now be a good time to buy into these 395 Calls and try to play tomorrow's upside? Lets look at how these options traded the next day. Can you see they hit a high of $4.65 sometime during the following day? I did two very small trades on the Friday morning bounce back. I just wanted to cover my commissions a make a touch. Remember Deere options are extremely difficult to play and with only hours to go before they expire its not bad to take a profit whenever you see one. .................. My times in were 10:14 to 10:31 a.m. and 10:59 to 11.09 a.m. I missed the elusive high of $4.65 which happened after I got out. Part Two. Going forward. Let's look at Deere's five day chart and look at how the 400 series o

Buying A Stock After a Material Change of Events

Please listen to this logic. The week before last Krispy Kreme jumped on the Friday and ended up $2.76 on the week. The news was that the donut chain will begin to sell its products in most of the country's 14,000 U.S. McDonald's locations, requiring up to 30 new backeries to boost output.
Here is a look at it's ninety day chart.
Now here is a chart of how it traded last week.
With so many things to watch of higher quality I am not a fan of following this stock. My point however is to add stocks like this to your radar screens after major events like this. Why? Well the odds become greater of a second wave of buying kicking in. Look at the volume that poured into next weeks 15 series of Call options on Friday.
On Thursday they were trading for considerably less and notice that these were positions opened and not then sold out on the same day. Once again my point is not to be afraid of chasing action like this and it makes sense that it would pop again on a Friday. The decimation of good news is afterall a process of a delayed reaction. A Monday morning 11:02 a.m. look at the same story.
To be continued.

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