CAT Puts

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...

 Donald Trumph talked tough on tariffs this week. All cars are expected to cost more. Car makers will take a hit and used car retailers will be able to squeeze out higher prices. So it goes in theory. That plus the DJIA had a good week.  Here is how the Call options on Carvana traded on Friday. If you read my recent past blogs you will see the same chart performances where Carvana jumps up.. Here is it's five day chart. Look at how the Call options preformed on Friday. The stock was up $12.78. The one day calls options (the last day to expiry Calls shown below} did wonderfully well. Look at the high and low numbers on it. Look again at it's five year chart. Jump in, jump out. If you look at a few of my recent blogs you will see how often it jumps up and down. If you hit one of these moves it will make your week. It's jumps up and down are not really related to any news. Costco is another stock with wild option swings. Trading Costco options is different. Professional writer...