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$Hertz. Sometimes One Month Out Options Can Be Your Very Best Friend

One month until expiring options can be your very best friend. This time however we are looking at options on a stock in the five dollar range which are less predictable in nature compared to stocks in higher price ranges. The pace in trading them can be slower. Case in point is Hertz. View the following information. First it's trading chart today followed by it's five day chart. ... They are July 17th options and you can see how they had a slight pop on the opening. One of the things I like about this situation is how it's peirs in the industry are trading on the day. Now this readout. Notice the high of $.77 earlier in the morning. Let's move on to Tuesday morning. All three of the stock's piers are up. Whether it's drone stocks or drug stocks or auto retailing stocks it helps when the sector your'e trying to play is in agreeance with you're line of thinkings. Once again it is. Now this. Chat GTP would advise you from staying away from positions li...
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Caterpillar - It's First Quarter Earnings Report And Traders Are Staying Away. A Read Which Might Be A Good Reference Point Going Forward.

Boeing rallied yesterday on the release of it's earnings report only then to tank. Caterpillar is tanking this morning in the premarkets. Let's begin with it's 5 day and 30 day chart.
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The world needs to be rebuilt and Caterpillar is there to help. It's growing, it's got a good reputation, it's not laying off employees and it's doing just fine. If it misses a beat on it's earnings report so what? Life goes on. Then there are those pesky analyst who are known to offer a convoluted spin on things. If you like Caterpillar just buy it on the dips and put it away. So the markets will be opening on the commentary by the companies C.E.O of "sales about flat". Phrasing it that way is a recipe for short term disaster.
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The two printouts above show some of the early morning action in one Put series and in One Call series. What happened the next day? A slight rebound with next to no traders trying to capitalize on a rebound. What does this tell us? It tells us option traders in general stay away from trading the "release of earning reports" on Caterpillar.
Now the one week out Call options.
Low open interest, a low volume of trading and relatively big pricings considering the these are only slightly "in-the-money" Calls which might take a few seeks to gain value. The bottom line is that this stock really got beat up and going forward it's going to be again upward journey. It helps that they are buying back their own shares. ** Now a look at how Caterpillar traded at the close on Monday April 29th.
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The volume of Calls traded is very light. That's suprising.

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