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Caterpillar Puts On A Friday Morning

I am getting some flack from people saying I should have called this site CatCalls and not CatPuts. Oh well, I saved money by going with name Catputs. Now this. Caterpillar closed at $647.18 on Thursday and jumped to $655.54 at 9:47 a.m. on Friday morning. Then it dropped to 641.44, the low of the day at 10:43 a.m. which was 56 minutes later. That's a massive price swing. Looking for price swings on one day options are not normal trades to be thinking about. I get that Look at how this one series of Puts reacted. Option trader as I have often mentioned are afraid to play options on Caterpillar as it defies logic and continues to go up in price. It has an earnings report coming out at 8:30 a.m. on Thursday January 29th. Try and listen to their conference call. Profits may not be as rich as some people are expecting. Input costs have risen. Now let's look at the 650.00 Puts to see how they traded on the day. So few traders attempt to trade in them. Look at the super low open i...
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Deere On Earnings and Boeing

Here is a look at Deere towards the end of the afternoon after a premarket earnings report was released. It got beat up pretty bad. What we are now looking at is a printout of one Deere option series which will be expiring the next day. This snapshot was taken at 3:37 p.m.. Would now be a good time to buy into these 395 Calls and try to play tomorrow's potential upside? The stock is rebounding from a significant dip.
Lets look at how these options traded the next day. Can you see they hit a high of $4.65 sometime during the following day?
I did two very small trades on the Friday morning bounce back. I just wanted to cover my commissions and make a touch. Remember, Deere options are extremely difficult to play and with only hours to go before this series of Call options expire its not bad to take a profit whenever one materializes.
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My times in were 10:14 to 10:31 a.m. and 10:59 to 11.09 a.m. I missed the elusive high of $4.65 which happened after I got out. Part Two. Can you make money looking for bounces? Look a Boeing's five day trading chart last week and look at how it bounced on Thursday.
Guess what I picked up on Wednesday? "Out-of-money" Boeing Calls, 10 of the 190's, they were way "out-of-the money" Calls and 4, 185 Calls. I got lucky and got the bounce I needed on Thursday morning to make out alright. I did, however sell out to quickly - it's always difficult to guess the top, especially when holding "out-of-the-money" soon to expire positions.
Part two. Now let's move forward to looking at holding Boeing over the weekend. It sometimes pops on Monday mornings. I got in on Friday at 3:57 p.m. and out on Monday at 10:15 a.m. Getting out is always the tough part, trying to pick the correct exit point. This time I was off a bit. I got nervous on the fist dip and should have waited longer. In at $1.06 and out at $1.56.
Here is how the stock traded on Monday.
It dropped on a weak opening and then had some strong legs. It lost steam towards the end of the day. To be continued.

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