CAT Puts

First it's five day chart. There was news this morning which might be attributable to this morning's jump in price. Ai news should always be taken with a grain of salt as it doesn't add to the bottom line profits overnight. The markets jumped today big time. Do markets sometimes take a pause after big jumps like this? That's the question and that's why I am attracted to it's one day Puts today just prior to the closing bell. A fifty cent selloff in tomorrow's premarket or shortly after would cause these Puts to jump by 50%. A double in price on the Puts would take a bigger move down than fifty cents. Might the stock give back one half of what it gained today? Here is how it is trading in the aftermarkets on Thursday. One concern is the light open interest numbers. This can make for larger than usual spreads between the "bid and ask". Let's hope it's a get-out-quickly situation however there is still lots of trading life left in these P...

Here is it's chart on the day as of 3:37 p.m. There is recent talk of Trumph helping the farmers with bailouts.. It's a Thursday with options on this stock expiring tomorrow. I want to show you how some of the "out-of-the-money" Call options have traded today. First here is how the markets are doing in the late afternoon. Now look at these three series of Call options. They are all "out-of-the-money" Call options. What are the odds of ever catching this action? It would of have required the mentality to be willing to buy them on this morning's dip. That plus the stomach to purchase Call options which are "out-of-the-money" with only one day to go. It's not everyone's cup of tea. I get that. So once again, Caterpillar has had a healthy upsurge on the day. Would it make any sense to be looking at tomorrow's Puts? Well check out this one series of "at-the-money" Puts. They actually look very reasonable in price. So the q...

This could be an exciting opportunity. ...... Now its one day chart. Ay 2:49 p.m.with the DJIA average up strongly the stock is still struggling. This could be another one of those cases where it is a good time to get out (see our Exxon blog today) for the same advise. Wednesdays can be turn around days for "one-week" or in this case "three-day" options but if things are slow in happening it's just best to bail and never look back. It's called day trading. Once again, this take your profit decision applies to last "week-Wednesday-short-term-option" playing. Wednesday going into Thursday are a tricky space to be in with overnight options. This "take your profit approach" doesn't necessary apply to other days. ** Here is how Boeing traded the next day. It wasn't a walk in the park for these options. ****** Let's move forward. If you had the guts to purchase these 200 series of Calls on Thursday would would have got a rewar...

When a stock steps up like this it sometimes loses momentum. Let's see what happens. It's Wednesday. Here we are 27 minutes later. Maybe it's time to get out and rethink things. The morning jitters might get shaken off and it's sideways pattern may continue. Now at look at how the stock is trading at 12:28 p.m. It's not much of a day to be fighting the downside. Exxon is a stock where you can play it's interday swings. It's now 1:05 p.m. and there no urgency to keep watching this situation. It could go either way. It's time like this where it's a flip of the coin. To be continued. Here is how the 119 Series of puts closed the day. When you are dealing with short term options priced under $1.00 the smallest of moves in the wrong direction will wipe you out. Under $1.00 options in sideways moving markets is not where you want to be. *** Now a look at Thursdays action. It's not very often you see it trade sideways like this. Shown is it's ...