CAT Puts

With all the ups and downs it's hard to figure out what is going on. Look at these three stocks and the options on two of them. 1) Chargepoint. One series of calls on Chargepoint went up 58% yesterday in one day. It was a strong day for the markets. 2) Blink Here are it's recent numbers and the company is big on self promotion. The third stock I want to comment on is one called Wallbox. First a five day chart and then later a 'year-to-date chart'. I am not crazy about this stock because of the trading range it seems to be stuck in. It will only take off if it survives and starts to make money. Do your own research on this one. WallBox also scares me because of it's Barcelona" address. If it ends up merging with someone else you will be lucky to get your money back. My ongoing interest all three of these stocks is that the "range anxiety issue" that consumers seem to have for electric vehicles is slowly starting to go away. Even Trumph is now think...

First, here is what the markets did today. Now this.Look at the high and low on these options today. All Call option holders were rewarded beyond belief. These are the moves option players dream of. It's instituational money flexing their muscle. This also. This too. Now what? You can't fight it and you can't buy in. Deere also is having a nice five day run. It's not that anything special is happening with these two companies. Eight days ago in a blog I gave the example of how I bought a "330" series of Caterpillar Calls for two hundred and fifty five dollars. Had I bought the 330 series of Calls at that time with one more week of trading life in them they would have cost about $450.00 dollars. Today they would be worth over $3,200.00. This is not rocket scientist stuff. It is just something that has happened.

An observation. Playing stocks in the under five dollar range is ok if you have time to wait. When it comes to playing options on them you should look to take a two-to-four months out stance. Few option traders play options on stocks in this price range. I do and in these kind of markets as of late the two-to-four month period of time can be shortened up a little. What's sometimes is usefull is to watch three or four stocks in the same sector concurrently to spot a trend. Now look at these charts. They are all in different industries. Now here is a chart of a stock that was $5.00 like a week ago. What happened and what do they do? They make batteries for Electric vehicles and they just made a deal with V.W. Remember a few weeks back V.W made a deal with Rivean and their stock is jumping up. Now here is another stock doing something a little bit different. They are building a hydrogen/electric powered air taxi with vertical liftoffs and they have recorded a 523 mile flight. Here i...

Ford appears to be working on it's excess inventory problem. The stock surged this week. It helped the Barron's last weekend came out with an article entitled "Ford Is About To Make a Comeback. Hop Along For the Ride". Now look at how one of it's option series traded on the day. This move was a once in a year event. Many people do not like the stock Ford because historically it has being stuck in the mud for a long time. That plus stocks in this price range can be boring to watch. To be continued.

Look at Caterpillar's five day chart. It has nice spikes. Now it's one day chart. Now check for news. Well its not brand new but it is news. Nothing is gauranteed from looking at the five day chart. It closed strong. It might rally on the opening. No it didn't.! Here is how it is trading at 11:00 a.m. the following day. Down like $2.65 in morning trading. Now Wednesday morning.Down again. There was no news or no reason for this drop. It is a Wednesday morning. Look at the lack of interest in playing these Calls. Wednesday's are the one day of the week for market reversals. We are still a tad to far away to introduce the concept of how the stock will react to the release of quarterly earning reports. That doesn't happen until August 6th. The low volume of trading is not a particularly attractive feature to option traders. These 325 Calls are $1.29 cents "out-of-the-money". Any kind of a two or three dollar rebound would have a positive effect on the...

In Barron's on July 8th. It goes something like this. Zero-Dated Options: A Road To Addiction. I know we are at a market top when my 17-year-old son is begging me to allow him to trade these options with his savings from birthdays and graduation {"The Lastest Day-Trading Craze". Cover Story July 1st). Instant gratification. Between this and sports gambling, we are promoting addictions. Read my last Tesla blog.