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A Jumpy Week For Caterpillar - A Week With Earning Reports

Here is Thursday's trading on the day on Caterpillar. Here is how the $417.50 calls that expire tomorrow closed the day. Something happened this week. Caterpillar had a quarterly earning report come out on Tuesday. It's stock trading action survived this news unscathed. Here is it's five day chart as of the end of Thursday. Maybe the 420.00 or the 422.50 series Calls are better to look at? Here they are. But wait. Deere got clobbered today on the release of a quarterly earning's report. Why didn't Caterpillar sell off in price in sympathy? It shoud have. Deere sold off $34.70. For this reason alone I would be more inclined to purshase the Puts. Here is the series I would consider. To be continued.
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Towards Understanding The Usefullnes Of Long Term Call Options

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Why are we looking at this? Well can you see how Ford was trading at $10.00 only five days ago. If it ever rebounded back up to that level in the next couple of days or weeks these options would probabaly jump up twenty percent. In other words, "one-year-out" Call options on stocks in this price range offer amazing leverage. The fact that they are one year out doesn't rule out the possibilty that you could be "in-and-out" of them with a decent profit in a relatively short period of time. On a differing note, options on stocks in the five dollar range can sometimes suprise. Here is a stock I talked about before it had some big moves.
For now, stay clear of all Moderna and Eli Lilly Call and Put options. That plus learn to appreciate that long term options can be used for short term gains. *** The same Ford Calls the very next day on the opening.
Now here they are two days later.
Here they are again. This time ten days later.
Look at the one day volume pour into them. Something has changed in the auto building industry to make this light turn green! Once again, long tern options on Ford can be an amazing trading vehicle.

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