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Rivian. History Repeats Itself

Back on June 26th 2024 I posted a blog about V.W. injecting $5 billion dollars in Rivian. That's a fair chunk of money. Here are two clips borrowed from that blog. .... Rivian jumped on that news. It now has a future. Look now at how it traded two days later. The good news from this event quickly dissipated. Now guess what? Look at what happened this week. There was a Rivian "good news" event again. Now here is how the stock performed this week on this news. Jumping into buying Puts on this news with two days of life left in them would have been the way to play it. Here is how two series of Rivian Puts traded on Friday. (For interest sake only, here is Rivian's three year chart. It has it's ups and downs). For the most part, Rivian is not a fun stock to play options on. That's a comment I often make about playing stocks in the $15.00 range. **** History doesn't repeat itself when it comes to where our readership is coming from. This is a Canadian bl...
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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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