CAT Puts

 Options on stocks in the $1,000  range often move  50%  or more in only a matter of  minutes on the opening on Wednesday and Thursday's . The trick is to  anticipate correctly which way the markets are going to move. That's a fools game you might say? Yes and no. It may not be a game you ever play but it might be something to consider to put in your bag of tricks when you are on a role. One thousand dollar stocks sometimes move five, ten or fifteen dollars on the day. If you have profits it's best to take them quickly. Costco is a prime example of that. Let's look at this mornings action. First it's five day and one day charts. Tuesday's trading was kind of choppy. Might it drop on the opening tomorrow? Here is a look at where the 1,035 series of Puts closed that expire this Friday. They closed at $8.50. It looks like Costco cycled up about five times yesterday. Given a weak market opening doesn't it stand to reason a three or four or five dollar will be i...

Robinhood is outperforming the markets. Here is it's one day and ninety day charts. ::::::::::::::::::::::::::::::::::::::; There is news about something happening which will positive for brokeage companies. Here it is. Robinhood was down in the premarkets but up on the day. The Genuius Act is coming. If it was going to be passed tomorrow this stock would have jumped up more than it did. Let's start to watch these Puts and the trading action in Robinhood to try to outguess what might happen next. Here is where these slightly "in-the-money" Puts that expire this week closed today, a Monday. If the DJIA jumps on the opening and Robinhood gains a bit I would be looking at the Puts on the opening of trading looking for a short term reversal. I wouldn't be looking at the 65 "in-the-money" Puts but rather the 64 series of Puts. But wait, Tuesday is my least favorite day of the week to be looking at options that expire in four days on Fridays. Wednesdays are...

It's late Monday morning and the markets are flat to slightly down. In our last blog on Friday we talked about trading Costco options and showeed how it surged in price on Thursday and Friday. This morning there was a pause and these "at-money" one week out Puts had a nice short term bounce until Costco decided to go back up again. Here is it's morning dip. Now here is how the Puts that expire this Friday reacted. What's missing is the price these Puts closed at on Friday before the weekend. They closed at $10.51. Then in this mornings dip they hit a high of $17.50. Not a bad return for a short term option trade. Monday mornings are sometimes devoid of market chatter and times when stocks stall out or take a pause. Playing options on stocks in the $1,000 range throws different tricks at you.**** A look at it's one day trading activity. Once the stock started charging up there was no looking back. Many daytraders do not like holding options overnight with t...

We are living in a world soon to be affected by tariffs. We have not yet felt the pain of what that will mean. So why is are the markets going up? It doesn't make sense. Earning reports coming out are not that great. Boeing and Deere and Caterpillar are all struggling but their share prices continue to rise. Remember I talked about playing Walmart Call options on Fridays if Fridays turn out to be strong days? Walmart Call and Put options are something newbie option players can fiddle with. If you catch them right they can be explosive, especially their one day Call option on Fridays if the DJIA has a suprise rally. As of late it happens more often than you might think. It just happened this past Friday. I kind of get tired about talking about them. I also know how dangerous such a trade can be. Look at the action in the 96 series of calls. Shown below is Friday's one day action with the DJIA also jumping up as shown below. Walmart opened cautiously on the opening. In fact it...

A few carefully crafted sentences puts to rest all concerns going forward. Read them below. Or do they? What am I talking about? I am talking about managements response to how well they did in their last quarter of operations. The long awaited Deere quarterly earnings report was released this morning. In previous blogs we showed how crazy expensive the Calls and Puts where on it, in anticipation of this news. So it's earnings are now published for all to read. It was announced that profits were down. Management basically says "so what". They also said in a round-about way that they were not going forward to be doing anything much differently. There were no apologies for a poor earnigs report as if it was something to be expected. All of their comments seemed pretty chill. The stock went up. That's a pattern more common as of late. So the Call options go crazy as you can see on the five day chart. Call option holders made money irrespective of how expensive they ini...

What's the DJIA doing? How is the chart on Caterpillar? Isn't it true most of us would just stay away and forget thinking about purchasing Puts. Here now are the "near-to-the-money" Puts. Now the further "out-of-the-money" Puts that will only start to reacte with a sell-off of three or four dollars. The volume at this point in time is greater in the "near-to-the-money" Puts however they are both scary from the point of view that there is nothing on the near term horizon to make them change the coarse of their direction they are now on. Early buyers in this morning were hoping for an early morning market reversal. It didn't happen. Now this, about 50 minutes later. The Puts have become more affordable. Caterpillar at 11:35 a.m. keeps inching up. Now a 11:38 a.m. look at the 350 and 345 series of Caterpillar Puts. I like the 345 Puts now in the one dollar range but only for a short term hold of a few hours.== Here is it's five day cart....