Featured

Late To The Party Option Players - Disney

Can late to the party option traders make money? It's something to consider? These Call options expire this Friday. There was news on it before the opening today. The second chart below a few minutes later shows it hanging tough. At 10:01 a.m. we now checking out the Puts. The bid and ask on the Puts are very tight. That also makes us ask what happened to the Disney 101 Calls that we first looked at? Here is what the chart now looks like. More Call option players have jumped in to play the upside that the downside. Might one do a spread and try to play it both ways hoping for a breakout either way? That's an option to consider. Disney has being a dog of a stock now for a year so might some profit taking set in? How is Disney going to pay for another theme park? With that on their plates forget any share buy back programs. They are taking on new risks in a period of global uncertainity. Are late to the party option traders best just to stay away from this unexpected situ...

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.

Comments

Popular posts from this blog

Living on Kraft Dinner?

The Little Engine That Could

A Fireside Chat - One Year Options and Thirty Day Options. Which is Better?