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Stellantis On A Monday Morning After A Big Fall

Last week was a bust. Here is it's chart. Now there are a couple of options to consider. The most logical ones to consider are the $7.00 series of Calls or the $7.50 series of Calls. In the case of picking one or another I like the $7.00 series of Calls better. To simple a judgement call you you might say? Well the stock just lost 30% of it's value and many traders leading up to this sell off were afraid to play the stock knowing it's product lines are in general to expensive and knowing that there are no quick fixes. But wait, might the stock continue to slide on Monday morning? Probably not as the stock just had a pretty big haircut and all of the auto stocks now seem to be having issues. Why beat up Stellantis even more?. The other part is that this might now be an attractive buy in situation. Why not get in on this action at this attractive new pricing. Get in on the Friday near the close hoping to profit from a Monday bounce. Selloffs this large are rare. What would ...
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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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