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Carvana - Short Term Options.

It's not an average day trading in the markets. Trumph creates suprises. Look at this printout. It's difficult to read however only Carvanna is down. It's down over $10.00. All of these companies trade in the same space with some slight difference as to what their business models are all about. Now look at Carvana's chart. . Now this. This series of Call options are down 52% on the opening. It's Thursday morning and these contracts expire tomorrow. Why would you even want to trade something this risky? One reason is that this is a "crooked-stock" that some traders follow. The company buys and sells cars and switchs numbers around to different controlling interests. With this stock anything can happen. It should come as no suprise that there very few option trader's willing to trade them. It's now 11:23 a.m. and nothing has changed much. These options are down 53% on the day. Now an "end-of-day" five day printout. Here is how the DJIA ...
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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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