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Nvidia Options On A Tuesday Morning.

Itching to find something to do in the markets on a Tuesday morning? Well it's not a typical Tuesday morning from a trading perspective because Monday was a holiday and the markets were closed. Traders are just getting back to work. What about Nvidia options that expire at 3:00 p.m the next day? You're gauranteed that the liquidity found in these options will be great. The markets are opening somewhat sideways with some strenght in the Nasdaq as shown as of 10:20 a.m.. The real action happened in the first few minutes of trading which is commonly the case. Look at this early morning readout of Nvidia just ten minutes into the trading session. ... What do we see happening? Focus on it's chart. Nvidea closed at 215.62 and opened at $215.70. Then it moved up slightly like it did on it's previous Thursday's opening and to a lessor degree on it's Friday opening.(This is a one day chart as of 10:45 a.m.). In the very first two minutes of trading the Puts slipped do...
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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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