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Why The Appeal Of Trading Caterpillar Options Is Now Diminishing

In previous blogs I looked at Caterpillar spiking upwards through the $1,000.00 barrier for the very first time. Twenty and thirty and forty dollar daily jumps on the stock were the norm. Today we are entering more sobering times. Pundits are now commenting on the upcoming release on August 4th of Caterpillar's quarterly earning report. That is not far away. The stock has doubled in price in a relatively short period of time. Is the party over? Look at Caterpillars one year chart. The companies earnings have not doubled in the last year. Far from it. So now what? Buy a Put option thirty days out in the hopes the stock might drop ten percent on a more normalized earning's report? Maybe. Here is an example of the cost of what one of these Puts would look like. Given it's current bid and ask the stock would have to drop to the $1,005.00 just to break even. It could, however most active option day traders are seeking opportunities which can play out in hours or in a day. Case...
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Vinfast

I see this companies electric vehicles on the road and I have to admit they offer a fantastic ten year warranty. Are they reckless in making such a offer when they have no track history? Might not high servicing costs come back to bite them further down the road?
Look at how the stock jumped this week on this good news. While high production increases are only one part of a companies story they are encouraging to their shareholders.
Visit there website and learn about their dealership network. The waiting game begins to hear about their next earning's report. Now look at these three charts.
Back on Sept. 6th I wrote a blog on "Nio", a chinese electric car company. Here is it's chart that I showed in that blog.
It shows Nio jumping 25% in one week. Now let's look at it's three month chart.
Recently I did some blogs on trading options in the five dollar range. The scary part is we have seen how other stocks in this space are down. Look at these four. None are up. All have a story but none of them are rewarding shareholders.
Lucid just made the announcement they are issuing new shares to help raise money. Other news.
Do your own homework on this one.

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