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One Day Boeing Puts On A Friday

It's 9:56 a.m. Now it's five day chart. This is where it will get interesting. Notice it has a rebound off a soft opening? Traders who used the 212.50 series of Calls on Boeing's soft opening were already well rewarded. Here is what the indexes are doing. So that's it. You could wager $100.00 U.S. plus commisions for one contract or multiples thereof and walk again. It's a bet on your abilities to recognize chart formations. Now this. If you bought in and a small gain materializes in a matter of minutes do you take it? Sorry. It's now 10:46 a.m. There is no gain. That opportunity never presented itself. In fact these $1.00 Puts we were once excited about dropped down at one point in time to $.42. .. If you signed up to be part of the action can you see the mess you are now in? Here we are seven minutes later and things for these Puts are starting to get a touch better.That's how quickly things can move. Can you see at this point in time how dangerous ...
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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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