CAT Puts

Another name for this blog could be "Boeing On The Day After One Big Crash". If you recall Boeing had earnings come out yesterday and the stock jumped on the opening and then sank as the day progressed. Boeing is struggling to get itself back upwards after a couple of years of brutal earnings reports. Here now is its five day chart as of the close on Wednesday. It's earning report came out on Tuesday July 29th. Now it's one day chart on July 30th which is also the last day of the five day chart shown above. So one question to now rehash is how do we explain Boeing jumping up in price within seconds of the market opening after it earnings report came out? Look at the actual first few minutes of trading. Here is a chart below showing this action. Boeing jumped up and then sold off quickly. In the late afternoon the stock took a grubbing. That's what the chart below shows. Can you feel the panic in the air as the afternoon dragged on? Traders...

Avis runs with the stock symbol "Car". Here was its chart today. We are starting to see more charts like this. Here is one reason why it fell. Here are how other companies I watch in this same space traded on the day. Now these two five day charts. ........... Is the sky falling or is this just a bump in the road for Avis? It's to early to tell. If the job market says healthy then this is just a little bump in the road and G.M. is forcasting record breaking profits for the next two quarters. Now a five year chart on Hertz. Maybe these three month out, "in-the-money" Call options would be an interesting play. It would be a bet on the used car industry surviving the rest of the summer and slightly beyond. Could the stock go back to where it was trading thirty days ago? People still need cars to go to work. Yet what again do I know? **** A next day look at the stock Carvana. Yes used cars are still expensive.

It crashed hard. It has had crashes like this before. Yet it's not a company that is going to go away. They still have sales in the billions of dollars. When the dust settles this stock might gain back what it has just lost. Would I be rushing in to play the upside. Short term no but maybe long term. It looks like Eli Lilly fell in sympathy. Can you play Eli Lilly for a bounce back up? Look at it's chart. It's wild. Here is it's thirty day chart. Knowing that Novonordisk crashed yesterday and knowing that Eli Lilly took a slight hit also creates an opportunity. Novonordish woes are not Eli Lilly woes. Here is how Eli Lilly is trading in the premarkets this morning. It's up ten dollars. Options can be used as a vehicle to make money on causal relationships. Now for one caveat. Playing options on stocks in the $750.00 price range is next to impossible. Why? Well the premiums are crazy expensive. Here is an example of how one series of it's the Calls is trad...

The little small fish players can't play them. Especially on the morning of an earning's release. Here is one comment on what happened. Is that observation something we should keep in mind (the weakening dollar value aspect) on other soon to be reported earnings reports? The pricings on Netflix options are astronomically high on the eve of their quarterly earnings report. Here is it's five day chart. Now here we are going into a Friday morning opening fresh after an earnings release and here is how the 1275 series of Puts closed on Thursday at 4:00 p.m. Are you able to see the price they closed at? They closed at $39.75 a contract! Are the Calls any cheaper? Not really. True to form there are slightly more outstanding open Call positions than Puts. Now image this. If you own a block of this stock you can sell the Calls and Sell the Puts simultaneously. If the stock closes up ten dollars on the day the Puts expire worthless and that money now belongs to you. Then you wou...

There is money in garbage. Trucks and trailers and landfill sites and garbage hauled hundreds of miles away like clockwork. Money, money, money. This stock is always going to go up. Buy it, hold it and if it drops just hang on to it and watch it come back up again. Yes there are options on it, options that trade in one month intervals. This month's options series expire tomorrow July 18th. Here is a look at how they traded today. Only two contracts traded on it today and there are only 200 contracts in total outstanding. One of the things that means is that you are at the mercy of the option makers when it comes time to buy or sell. When buying you might be forced to pay closer to the ask than the bid and when selling you may be forced to pay closer to the bid than the ask.There are no 215 Calls on it, only the 210 series and 220 series. Yes there are both Calls and Puts. Now a look at it's three month chart. If it's such a great company, why is it now down in price? Wher...