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Bad News On Caterpillar Going Into a Friday.

Here is how the stock traded on a Thursday.There was nothing unusual about the day. I am suprised they would dump this news on the market going into a Friday trading session. It messes up option traders. Doing this type of an announcement on a Tuesday prior to the markets opening would be a less disruptive day to do this. Here is the news. In a way this wasn't totally unexpected news. As they said, there were several other recent updates on this issue. Auto companies in their recent quarterly reports were harping on this issue. Look at how it dropped in price in the after market trading. Now here is how one series of Puts closed the day. Look at how this news totally caught the markets by suprise. The secrecy of this news is a credit to Caterpillar. If Caterpillar had this news are Deere Call holders going to get worried? Here is what happened on Friday morning. Now Deere which is now also trying to shake off this bad news. These two stocks tend to trade in similiar ways. He...
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U Tube Videos and Carmax

I am hooked on youtube videos watching podcasts of what is happening in the auto industry. One subsection of this addiction is the Tesla story and another what is happening with the U.S. used car market. Who can afford to finance a used car these days with prices and interest rates so high? CarMax had their quarterly earning report today. Up or down? What do you think? Barron's on the weekend made a few bullish statements. "Analysis expect the company to report a fiscal forth-quarter profit of 46 cents a share on sales of $8.8 billion, an increase of 5% and 1% respectively. Sales should get a boost from tax refunds, which accelerated into the end of the quarter and an increased supply of newer used cars". So here is what happened on the release of their earning report.
As a blogger should I have told you this was going to happen before it happened? The human brain is lazy. If you think you can make money in option trading you are going to have to teach yourself to be ahead of the curve. Now look at how the near to expiring ( tomorow ) Puts did as of 12:45 p.m. today? First the 80 series of Puts.
Basically a double. In was a pretty straight forward reaction. Here now is how the extra spicy ones traded.
Mark this date down in your calender book and revisit this scenario a year for now. I should be collecting an email list of all the viewers who want to be reminded of events like this but there are many things I should be doing. *** An observation on Friday April 12th, one day after. Look at this five day chart.
Can you notice the dip in Carmax on the morning prior to the release of the earnings report? Was that a hint that something no so good was about to happen?

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