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A Jumpy Week For Caterpillar - A Week With Earning Reports

Here is Thursday's trading on the day on Caterpillar. Here is how the $417.50 calls that expire tomorrow closed the day. Something happened this week. Caterpillar had a quarterly earning report come out on Tuesday. It's stock trading action survived this news unscathed. Here is it's five day chart as of the end of Thursday. Maybe the 420.00 or the 422.50 series Calls are better to look at? Here they are. But wait. Deere got clobbered today on the release of a quarterly earning's report. Why didn't Caterpillar sell off in price in sympathy? It shoud have. Deere sold off $34.70. For this reason alone I would be more inclined to purshase the Puts. Here is the series I would consider. To be continued.
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Can You Play Deere For A Friday Morning Pop? It's Tricky.

Maybe, here is it's five day chart at the close on a Thursday. Yet a five day chart isn't going to help you in figuring out what is going to happen next.
Which way, up or down? Here are the slightly "out-of-the" money Calls as of a Thursday June 6th closing with one day to go in their trading life.
You can see more people like the upside than the downside? That's always the way it seems to be. Now here are some slightly "in-the-money" Puts.
The stock has gone sideways all week. The number of open contracts on these now "one-day" options are very light so that will have no effect on which way this stock will move. Recent history tells us that one day Friday reversals on this stock are a frequent occurance. Wait until it opens and moves in one direction and then get before it moves in opposite diection. Buy "out-of the-money" options and hope for a three dollar swing in the options. That's not much of a strategy and look at how few traders are playing that game. No one really is. Yet recent histories tells us one day reversals off this magnitude are a very common occurance. Is this a reckless trade? Yes very reckless. If however you are coming off a quick win from playing options on something else it might be something you might feel comfortable entertaining. Let's watch now and see how this situation plays itself. It tanked on the opening and quickly pulled itself up.
Here was the opportunity to play a reversal.
This all happened in the first hour of trading. Now here is how it was trading at 1:15 p.m.
Now the final one day chart.
Remember with option trading the rule is on Friday retail traders must be out of their option positons at 3 p.m.. Now the five day chart.
It's funny when you can double your money or make even more on a trading day when the stock really didn't do anything.

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