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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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Caterpillar Calls and Earning Reports

So the market tanked last Friday and tanked again on Monday to then rebounded on Tuesday. They are still down from where they were one week ago. Caterpillar released their second quarter earning's report this morning. Readers of my past blogs might know that the guidance offered for this most recent three month period of time was not particularly stellar. What I am referring to is the guidance offered after the release of companies first quarter earnings report earlier this year. Here now is the companies current financial highlights and two articles by writers with deeper insights than I have. I noted in my most previous blog how Deere, Boeing and Caterpillar have all tanked in the last week.
Did I know this was going to happen? Well commodity prices are not particluarly strong which indirectly affects their profit margins and rebuilding countries like Ukraine is not yet in the near term cards. Mentioned was the fact that sales to construction and resource industries declined. We kind of expected that. The big market crash last Friday coincided with the timing of Caterpillar's earning release. So many factors were in play. Here now is it's five day chart.
Now here is how one series of it's Calls traded on the day. What a nice bounce these options had.
Look a how low the trading volumes are. After the markets recent grubbing, and the fact that's it's summertime, no one seems to be in the mood to be buying one week or less Calls.

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