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"Ford Puts" Com.

Can daytraders catch the action like this? 99% of daytraders don't. I watch it, I track it, I occassionally catch some of the action. This morning there was an incredible score to be had. Let me spell it out in greater detail. Look at this chart. It shows how the Ford stock opened on the opening. It opened up about ten cents. That's what the above chart shows. Now let's move on. The next chart is a five day chart. The D.J.I.A. dropped over one thousand points yesterday. Ford surged upwards on an earnings release an then had a partial selloff in the afternoon. Now if you look carefully at this five day chart you will see the slight rebound on the opening. (The one day chart actually shows it better). The 15 series of Ford Puts that expire tomorrow got squeezed. Look at how much they got squeezed for. At the height of this mornings 10 cent uptick they got squeezed down to $.04 per contract. Now lets check in at 11:55 a.m. Can you see how they continued to drop. I have tal...
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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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