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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 tough.
Caterpillar hangs tough.
Now here is how these Puts closed the day.
The closing on the DJIA.
The common theme of all my blogs are the same. Tuesday around noon is not the time to be looking for reversals on options that expire at the end of the week. Tuesdays in general are not a good time to be buying any "end-of-the-week" options. Anyone now holding these Puts are now at the mercy of how the market opens tomorrow. Who needs that stress?

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