CAT Puts

 Open the door and guess what might happen? Who knows which way the winds will be blowing. The used auto car market got dumped on last week in the U.S, especially on tariffs new.  Trump said he might raise the tariffs on cars to more than 25%. It's a fickled  market. Here are a few of the sell offs. 1) Carvana Company. It sold off over $21.00 dollars on the day last Friday. They have a reputation for having share manipulations with a long history of  insider "buying-and selling-activities". They have a short interest of 5.3% . It didn't help much that the DJIA was down over 700 points on Friday. 2} Carmax also sold off on the week. They have an earnings report coming out and that could cause the stock to drop but maybe not. It could actually rally. Here is it's one week chart and a conference call dial in number. Listen to it if you like. I might be. Now here is a look at the 65 series of Calls on this stock that expire this coming Friday.  On Friday morning at ...

 It's  going to take time for the dust to settle on this event.  The stock dropped on the day it happened.  This event puts option traders in uncharted territories. Do you look at the Call options on it that expire tomorrow?  Here is how one series of Call options were trading mid afternoon. Let's now look at how these same series of Calls closed out the day. One question to now be asking is why try to even being playing these options. Remember just a few weeks ago when Boeing had two straight weeks of upside movement?  Why get caught up in this turmoil now?  Let's move on. Let's now also track the Calls with the same striking price one week further out. My thoughts are it's best just to stay away. The worry of why this happened might take some time to go away. There are easier battles to play.  A Friday update. The DJAI was down. Boeing was down . The 205 series of Calls we were tracking that expire today expired worthless and here are next weeks...

 First it's five day chart. Toyota Motors increased its stake in the electric-aircraft manufacturer to 128,454,401 shares. It did so through the purchase of 49,701,790 shares pursuant to a stock purchase agreement on May 22nd, 2024 at a price of $5.03 a share. Following the latest purchase , Toyota own's 15.3% of  Joby  Aviation's outstanding stock.  Now two  slightly longer tern charts showing the same thing.. Can you see the volume pouring into it? This is still a dangerous stock to own or to play options on. Toyota however seems to have faith in it.  That in a way provides a safety net to owners of this stock.. Recent Call option holders have done extremely well . So has Toyota who got in at $5.03. Now this. More new cash is flowing in. This could be a good thing. This company is not going to go away.

The stock has had a nice five day move.  Up until today that is. Short term options on stocks in the ten dollar range need to be purchased in multiples of ten or more because commissions are crazy expensive on options in this price range. At least they are in Canada.. Here is a look at the price of Puts yesterday on a series of Puts that will expire tomorrow. Bid $.04 or $4.00 per contract and ask $.05 or $5.00 per contract. They actually traded down to a low of $.02 on the day. Now here is a look at them today, which is a Thursday. Was there a catastrophe drop in the markets to make this  happen?  Not really. Trading options on ten dollar stocks with two days to go is full of surprises. I have talked about Ford options before. I will provide an update to this blog after the markets close tomorrow which is when these Puts expire.  Ford options have good liquidity and tight spreads. They often change materially in price in a one hour period of time .I also note that F...

 Trying to understand why oil prices fluctuate is a job in itself. Look at how Exxon  Mobile is trading. Here is your chance to play with the big boys in some of the most exciting option markets that we have had in a long time. Look at how Exxon  has traded in the last 30 days. These are big swings in a relatively short period of time. That's what helps in keeping the interest in playing options on Exxon so high. Now this. A five day chart on the morning on June 9th, a Monday. Look at the spike it had. Remember in my last blog I showed a spike in Deere only to watch a sell off two days later Now another five day chart, this time Exxon on Tuesday June 10th  around 2:45 .p.m. Look at how the stock is stepping up. Could it drop down to $104.50?  The chart shows that it could.  Or it could keep jumping up. Oil prices have being depressed as of late. I generally like Puts more than I like Calls. Stocks sometimes drop quicker than they go up. Now this, a look at ...