CAT Puts

Wednesdays in the world of option trading can be days for market resets. This is the third blog I have done on this stock Big Bear Ai. Reference my first blog of November 18th blog if you wish. Here is how I introduced the stock back then. The stock seems to trades millions of shares each day. It's options have good liquidity. Here is it's five day chart. Now it's morning chart. The markets aren't doing very much. Now here are this weeks Call options, (well one series of Call options) are doing. . Can you see at how at 11.06 a.m. they are starting to move up? ... to be continued.

1) It's chart. 2) A look at how two series of Calls reacted to this news. This time around the volume of options in these two Call positions and other Boeing Call option positions spiked. What a poor way to be offering this kind of guidance. 3) The news. The exact wording of what was said by it's C.F.O. can be found on other news outlets. It wasn't presented in formal way or in a clear and professional manner. 4) Here is why the timing of this news was so welcomed. Here is Boeing's news from 31 days before. What a different story. One month ago Boeing dropped to $205.00 on this news. The bottom line to all of this is that this kind of "happy days" news is putting so many other stocks like Caterpillar in unchartered territories. It's all kind of like walking on eggs. 5) As just mentioned, Caterpillar today also jumped up on this burst of euphoria. Caterpillar didn't really have any good news of it's own. 6) Deere recently had a decent earning...

It's down. The 117 Puts are up over 40 %. Only one Put sold on the 117 series of Puts in the first three minutes of trading. Now look at the Calls. This time we are lowering the striking price by $2.00 to get closer to the "in-the-money" options. Will these Calls rebound? Slightly later. Let's jump ahead to see how they closed the day. I am not a big fan of holding onto short term options overnight on "last-week-to- expiring" options however these ones are still 1.5 weeks out. That's still not much comfort. My excitement of my previous blog yesterday talking about four trading opportunities to trade in these options in one day has now lost some of it's shine. The one assurance with trading these options is that oil is an international commodity and the outcomes of how it is going to trade are outside of the control of the market makers and the stock Exxon. Option trading on Exxon is not always a walk in the park. Let's see what happens. Wedn...

At least it is now in this current market environment. Look at it's one day chart today. Remember, options trading on it are set up in one dollar intervals. Can you see how it jumped up on the opening? Now let me show you four ways traders could have made money trading this stock today. 1&2) A double happened right off the bat. Buy the 116 Calls at 9:30 a.m. and sell them at 10.00 a.m.. Or wait until 1:45 p.m. That would have also worked. 3&4) Buy the 117 Puts at 10:00 a.m. and sell them at 11:00. a.m. Or buy the 117 Puts at 1:50 p.m. and sell them at 3:55 p.m. Is it really possible to make three or four meaningful successful option trades on one stock in one day? I would say yes and in this case it helped that a double happened in the very first thirty minutes of trading. Sometimes the charts don't look like this. Let me give you this example from the opening of the trading session last Friday. From watching Exxon charts daily you will see a patte...

Fighting strong stocks is a tough game especially with the indexes seemingly so strong. The Nasdaq Composite ended the holiday week at 23,366 - up 5.8% over four days. The DJIA turned up last week after a four-week slide. Now this. G.M. only reports it's production numbers on a quarterly basis and it's next report is not due out until 2026. I also know that about six weeks ago G.M. popped on an earnings report. So why will this week's stock performance be anything different for G.M. than last week? I don't have an exact reason however I just want you to hone in on this series of Puts which expire in two weeks. The open interest in this series of Puts is next to nothing. That's a sign of strenght, not weakness. Two weeks away is a long time in the option market. I feel that G.M. is overextended as it seems to sell off near the close everyday. Yet then again, what do I know? Attempting to pick the tops of these swings is most often a losing proposition. Monday and...

Deere had earnings which as usual were open to interpretation. Here is how it traded on the week. It's difficult to know who to believe. Was Caterpillar affected by any of this news? Not really. It was up $25.33 on the week. One of it's divisions is starting to attract more attention. Options in both of these companies are thinly traded. I have talked about this before. Deere was down on the week and Caterpillar was up on the week. One of the problems with trying to play options on both of these stocks is that they can move up or down like $5.00 on any given day on no news. Buying on the dips if you look at the Caterpillar chart seems to be a way to profit on it's options. On Deere it was to buy Puts before it's quarterly earnings report came out. So where does that put us now? Looking at Deere Calls is one suggestion thinking it's oversold. Deere was down $22.75 on the week. Yet wait, look at the volume of trading in these two longer term Deere Call options. M...