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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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Boeing Came Out With Earnings Last Week and The Potential Of Playing Calls On It This Week

Here are it's earning details.The company is still losing money but a lot less of it.
The stock did well last week on that news. Well actually not really. It sold off in price but they it took a couple of days to sort out the fact that losing less money than it previously did was actually a good thing. The Trumph thing with China has also put a scare on things until the narrative got sorted out that Boeing still has the rest of the world to keep selling their planes to. Here is it's five day chart. It moved up nicely on Thursday and Friday and ended up closing out up $16.05 on the week.
What do charts like this do after they crest upwards and go sideways for a day? They sometimes keep moving up. Here is Monday's closing prices on two series of Calls that expire this Friday. Both might benefit from a pop tomorrow.
The the 192.50 Calls look like an impossible dream. Some traders pride themselves in trading in these types of astronomically "out-of-the-money" positions. If they wiggle down a bit in the first fifteen minutes of trading I might consider jumping on board. I especially like the 192.50 Calls for an upward ride or the 192.50 Calls one week out on a dip. The markets closed today (a Monday) down a touch.
I would play this game on a Monday at the close but not on a Tuesday or a Wednesday. Short term "out-of-the-money" options which expire in four days quickly lose their shine by Wednesday or Thursday. Now the Tuesday opening markets.
Once again, purchasing "out-of-the-money" Calls can make you look foolish at times. Now this, a look at what has happened a few days later on Thursday. The same two option series again that now expire tomorrow. Good news came into the stock.
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Look at the volume of contracts traded in the 192.50 series of Calls and also look at how low they sank to on the previous day. In contrast the 185 series of Calls were something with far less risk. Will tomorrow's action be crazy? Check back to find out. Here are the answers. "Boeing" had a good week again.

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