CAT Puts

Nio once again. The stock is on fire. Here is it's five and thirty day charts. Now here is last Friday's one day look at one series of it's Call options. On Thursday they closed at .07 (seven cents) and on Fridays close .52 (fifty two cents). To difficult to trade you might say. Well it's happened before in the recent past. Now Xpeng. ............ These are the 12 series of Calls which closed at $.16 on the previous day. These are dangerous options to play. Other EV stocks are also hot. Now this.**** Nio in the premarket Monday morning Sept. 30th. Another huge move upwards. *** There is talk that short sellers are covering their short positions on Chinese stocks. That might explain part of this action. It all has to do with currency reforms.

We hear these banterings all the time. Now here is how the Deere $407.50 series of Call options traded yesterday on a day when the stock was down. The volume of trading on this particular series of Call options was light and the options were down 50%. Not many retail players play options on this stock. Here is it's one day chart. It closed strong. So what did I do at 3:51:30 p.m.? The print is light and difficult to read but I says I paid $248.00 U.S. dollars for one option contract. I bought one slightly "just- out-of-the-money" Call option which expires in two days time. Wednesday going into Thursday morning's trading sessions can be profitable if the markets decide to uptick and this time we are looking at options that just dropped 50% in one day. So what happened? Here is where it starts to get interesting. There is something called premarkert trading. If you're watching the market about an hour before it opens you can see quotes showing the stocks then ...

, Now this. Now a strange remark "heard-on-the-street". Now a year-to date Caterpillar chart. Now here are two snippents of information taken from a Aug 7th blog on Caterpillar. These comments were part of a second quarter earnings report. Now it's five day chart. Caterpillar is going up on no news. Will traders consider buying "out-of-the-money" next weeks Calls? Not many traders want to go this far out however we don't see an upward movement like this happening very often. Now look at how this series of Calls traded the next day. Now a Thursday closing reading on these same Calls. What do you see? Talk about action. Will Caterpillar jump again tomorrow?

So, here they are nine seconds into the Friday morning trading session. If you wait two minutes to get into the action the dynamics of the situation may look considerably different. At this particluar junction if you have the guts to get in it's best to do it "at market". The bid and ask are tight. Now 1.5 hours later. As a trader wouldn't it seem like a good time to get out? It is afterall a Friday and there is always be more opportunities next week? Now look at it's five day chart. Are you able to see the massive rally of about $15.00 on Thursday on the news of interest rate cuts? Call option traders trading Tesla would had a grin on their faces. Do you think it will drop more? To better answer that question here is one indicator as to what the markets are doing. Now let's skip ahead and see the final readings. So a morning exiting was the correct call to make. At 11:00 a.m. these Puts were trading for $2.80 and another twenty minutes later they went as...

Here is is. Why do I like this chart? It spiked on high volume in the morning and volume came into it on the close. So here is what I did. If you see charts like this you could be also be doing this. On a cautionary note Boeing has hit a rough patch as of late but this trade might be good for a one dollar profit. If it happens take the money and run. If you miss a four dollar move to the upside so what. Here is a fill at 3:37 p.m. on a Tuesday which I could have got for less a few minutes later. I bought one contract for $2.01 or two hundred and one dollars. Here is Boeing's five day chart of torture. What might happen? Could it stumble on the morning trying to get fresh legs? Maybe. Here it is at noon the next day. Here is what I did. (I am trying to show first time option traders the sizes of trades they can do). Remember I said that I got in at 201.00? A $2.42 price happened at 11:12 a.m. which was the time when I got out. It's American money. (Look at the chart and see h...

Let me take you on an adventure of how the 230 Calls options on Tesla traded today, tommorow and possibly all week. If you read the entire contents of this blog the concept of option trading might start to sink in. How do you buy an option to go up or down? A "Call" contract means you want it to go up and a "Put" contract means you want it to go down. It's a contract for a limited period of time on 100 shares of a stock. You don't own the stock. You share in the profits if the stock moves in the direction you thought it would over over a predetermined period of time. Here is a printout of one series of Calls and this time the stock we are looking at is Tesla. They are Call options that expire at 3:00 p.m. this Friday with a $230.00 striking price. What's a striking price mean? It's the break even price a buyer picks and in the case it's $230.00. The difference on the upside between what the stock is trading for at 3:00 p.m. on Friday and the pric...