CAT Puts

Look at this Ford chart on July 1st. Now todays Call options. Every quarter these types of reports come out. This one was good. Watch for it Next July 1st. A $2.00 option went up to close at $37.00. In my introductory remarks to this blogging channel a few years ago I said many old farts driving Mustang convertables paid for them from money made on playing Ford options. This bounce today in the Call prices based on this good news report of rising sales was one of those events. Now this, the strenght continued into the following day which is Wednesday July 2nd. This is a short week for option trading with tomorrow being the last day. Action like this is extremely rare.

In the last few weeks I have focused on the erratic trading patterns of Carvana. Tariff talks are supporting the entire group of American used car sales retailers at this period of time. (My viewers seem to prefer blogs on stocks like Boeing and Costco, stocks they think they understand better.I get it). These options expire in two trading sessions. Two day options are also a topic many of my readers do not like. In any event let's start with what the indexes are doing at 10:40 a.m. on July 1st. It looks like it is going to be a strong day. Now look at this one day chart. The markets are up.The Puts on Carvana got crushed on the opening and quickly recovered. Look at it's chart. Now it looks like the stock wants to rebound back up again. It's time to bail on the Puts which at about 10:40 a.m. had hit their lows of the day and then more than doubled in price about forty two minutes later. Now the Call options two hours into the day's trading session. They have doubl...

Mondays are not the best of days to look for reversals however Caterpillar jumped upwards a modest amount which impacted the value of this series of Puts. The Puts are off about 50% on the day at this point in time. This is a 1:36 p.m.readout. Here is it's five day chart. Now its one day chart. It's Puts. Why consider them? It would seem like kind of a random thing to do. Why fight a strong stock? One reason is that the markets are only mildly up and could give back some of it's gains before the end of the day. Caterpillar could be gaining strenght based on all of last weeks business articles talking about how Caterpillar could potentially benefit from all this new AI movement. Caterpillar afterall builds heavy equipment which can be used in the construction of nuclear reactors. Notice that the five day chart is in an uptrend and notice the small open interest numbers in the Puts. That's understandable. No one wants to hold Puts on Caterpillar when it is in this...

 First, here is how the markets closed on the day last on June 27th 2025. In recent times that is happening more often than you think. Let's look a these following five stocks 1) Walmart. They were up 135.29% 2) Fedex. Of coarse these ones were "out-of-the-money". Here are the "near-to-the-money"  Calls where the risk were less and the gains not as spectacular. Still not a bad gain but a much safer trade. 3) McDonalds. This stock is beat up as of late. A 194% gain on the day. Can you see how we are not looking at obscure stocks. 4) Carvana These Calls were slightly "out-of-the-money" Look at the low and the high. 5) Boeing.  Here is an extreme price increase. 10,400%. You don't see that very often. Now here is another Boeing Call option with a lower striking price, something more conservative option players might find themselves in. The rewards were also impressive. I could go on with countless other examples. Now look at this. A screen shot of  ph...