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Snowflake Part Two : Thursday Overnight Position Going Into The Final Day Of An Options Life Are Not My Cup Of Tea Unless It Is Perhaps Tesla

The 172.50 series of options on this stock will expire tomorrrow. Today is a Thursday. The first printout shows a bit of a struggle on the opening in the first nine minutes of trading and a return to price it closed at in the previous session. (It did have a nice rally on the previous day then to only give it up). Could it rally again this morning? Now the second printout below the following paragraph shows the high volume of trading pouring into this series of Calls just after the opening. These high volumes of trading shown below happened in the five minutes and twenty one seconds of the trading session. Traders bought in on a slight dip looking for a reversal. Good for them. Are these traders hoping to be out at a profit in the next fifteen or thirty minutes? Yes. Get in and get out. Catch a profit as the stock is deciding which way it will go. It's early in the morning trading session and the volume of trading is always the highest in the first and in the last hour of trading....
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The Caterpillar Option Trade of The Week. (For The Week Ending April 19th,2024)

It happened on Friday. But first this news.
Now here is Caterpillars one day trading chart for Friday April 19th.
So the stock was up in the first hour of trading. It' a friday and anything could happen. Are buyers getting in to be part of the good news earning report? Does that set off alarm bells? A red light or a green light? Is it time for some counterintuitive thinking? Now look at this.
A look at how the 357.50 Puts closed on the day. There are other series I could show however these particular ones best illustrate the point I want to make. Can you see the low of the day on these Puts? Can you see where it says $70.00 a contract? As the stock marched up smartly on the opening this series of Puts was under pressure. If Caterpillar kept going up these options would expire worthless. The exact time period I am talking about was somewhere around 10:15 a.m.. Fast forward the time period to around 12:50 p.m. Look at how the Puts jumped up to $5.00! That was the trade of the week on Caterpillar options. Too complicated a trade you might say? Look again. It was actually pretty simple.

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