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Caterpillar Puts On A Friday Morning

I am getting some flack from people saying I should have called this site CatCalls and not CatPuts. Oh well, I saved money by going with name Catputs. Now this. Caterpillar closed at $647.18 on Thursday and jumped to $655.54 at 9:47 a.m. on Friday morning. Then it dropped to 641.44, the low of the day at 10:43 a.m. which was 56 minutes later. That's a massive price swing. Looking for price swings on one day options are not normal trades to be thinking about. I get that Look at how this one series of Puts reacted. Option trader as I have often mentioned are afraid to play options on Caterpillar as it defies logic and continues to go up in price. It has an earnings report coming out at 8:30 a.m. on Thursday January 29th. Try and listen to their conference call. Profits may not be as rich as some people are expecting. Input costs have risen. Now let's look at the 650.00 Puts to see how they traded on the day. So few traders attempt to trade in them. Look at the super low open i...
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Costco Is Flat In The Last Five Days.

Well it's actually had a couple of ten or fifteen dollars dips. Can you play it? Some would say why would you want to? If you look at the open interest in these two series of options below you will see that not many players want to. That in a sense that is a good thing. Here are two option series to look at. First the Calls that are set to expire this Friday.
Now the Puts which are also expiring this Friday.
Now here is it's chart a 10:05 a.m.
If your looking for me to make some brillant comment as to what is going to happen next you might be in for a disapointment. All I want to say is that the markets had a bad day yesterday and the 980 series of Calls almost doubled in price on that day. My point is that these options have the potential (Tuesday options that expire on Friday) to make amazing moves. For example in a past blogs I wrote about Costco on March 7th this stock was down $69.60 on the day as I was writing about it! I have strong repect for these options. Recent past blogs about this stock include title like "Costco Can Move" and "Costco Again, One Of The Most Explosive Stocks For Option Trading". In a June 5th blog I did on Costco I talked about buying Puts on Costco three days out and fifteen dollars "out-of-the-money"! They ended up going from $450.00 to $675.00 in a ninety two minute period of time. Yes these options can move. To be continued. Here now is what happened to the 990 Calls and the 990 Puts at the end of the day. When playing one week options Tuesday mornings are not a good time to be looking for the upside.
To be continued. Now Tuesday.
Can you see how these options can be traded almost hour to hour? To be continued. Now a Friday end of week look. First the 990 Calls.
Now the 990 series of Puts at the end of the week. They were at $9.90 a few days back.
* NYSE breadth fell for the first time in seven weeks.

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