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Caterpillar - Catching A Reversal On A Tuesday

Tuesdays are not the best of days to look for reversals however Caterpillar jumped a modest amount which impacted the value of this series of Puts. This is a 1:36 p.m. readout. Here is it's five day chart. Now its one day chart. It would seem like kind of a random thing to do and 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 last weeks articles talking about how Caterpillar could potential gain from this new AI movement. Notice that the five day chart is in an uptrend and notice the small open interest numbers in the Puts. No one wants to hold Puts on Caterpillar when it is in this uptrend. Could it has a soft selloff in the next two hours? Here it is now 50 minutes later. The "bid and ask" are almost unchanged. There is also not much change in the DJIA index.Now this. The DJIA is sellig off and Caterpillar is hanging ...
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If You Don't Know Anything About Snowflake Don't Feel Bad

It's one of those cloud based companies. I will tell you what they do, it's all kind of complicated. Even after you read this you will still not really understand what they do.
The stock is volatile and I have it on a watch list with other stocks like First Solar, Costco, Netflix, Moderna, Deere and Tesla. These are all stocks I watch with a passive interest and usually take more of an interest in them around the earning report seasons. Of all of the stocks on this list Snowflake is the one I am least connected to. What insights can I bring to the table about what is happening with this company or the industry it is in? None really. Ask me about Tesla and that's an entirely different and facinating story. Some of my best option trades of my life have come from playing options on Tesla. Now back to Snowflake. It had an earnings reports come out before the bell opened this morning. Here is it's one day trading chart the day before which was somewhat unremarkable. Insider's were not jumping in to play the upside before the close. That to me is somewhat impressive.
Now this, a look at it's previous quarterly earning report numbers .
They look pretty good to me. I note that other stocks have recently done well on poor earning reports. So here is todays one day action after their earnings report came out in the "pre-markets".
A big jump on the opening and the 170 Calls, and other Call options jumped up. Look at how high the 170 Calls jumped up to.
Pick fifteen or twenty stocks you find of interesting and watch how they trade on their earning reports. Keep reading little blogs like this to get a flavour of how I appraoch things. It's all very much a self learning experience. Tell your friend about this site and brain storm with them as to what might happen next. You might be smarter than you think when it comes to what might happen next. Here is how Snowflake closed out the week.
Now it's 30 day chart.
Now look at this. You could you now buy the one week 177.50 Calls for next week and sell aginst them the 180 Calls. (It might be to late now make that trade). Spend money to purchase the lower priced Call option and pull in a slightly smaller credit by selling against that position a higher "out-of-the-money" Call. Spreads are something you might want to learn about. Here is how these two series closed on Friday. More about this techique to come. I will keep you informed next Friday as to how this position turned out. I think Snowflake will have a good week given it's strong earnings report.

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