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So Deere Drops $9.64 In The First Fifty Minutes of Trading.

Here is it's five day chart and a look at what the "just-slightly-out-of-th-money-call" options are trading at. It's a Tuesday. Now this, it keeps dropping. Now a 10:49 a.m. update. The stock has rebounded $1.00 Notice the asking price has jumped upwards. At 11:00 a.m. it is starting to slip again. Do you see this time how quickly the bid and ask declined? Here now is the stocks five day chart. What do I think? Since the stock had a nice jump yesterday I think it might rebound in the next few hours. Now might be a good time to jump in looking for an upward move. That's my read on things. Let's see what happens. It's still early in the week. Now here we are at 11:30 a.m. or 38 minutes later. Now this six minutes later? Can you see how someone got excited about a rebound and bought in at $5.10? Now this at 1:03 p.m. Deere did come back at the end of the day. The trick in this exercise is to find the low of the day.
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The Classic Caterpillar Chart Formation

Here is a stock chart to celebrate. It's the "Caterpillar-jumps-ups-up-in-price-chart-formation". Celebrations like this do usually not last all that long. Today the markets charged up as Trump talked about Toyota investing an absurd amount of money on investing in the U.S.A. New car plants are coming. One number bantered around was $650 billion. If that was to happen, wouldn't Caterpillar benefit from all of this action. They would afterall be one of the companies most likely to be commissioned to supply some of the heavy equipment suddenly needed to help build all these new factories. Trump also announced that he would be cutting the tariff's on Japan's imports down to the 20% level. Yet all of these numbers could change. Here now are three short term series of Call options with different striking prices to look at. All have jumped up in price in one day.
Here now are the second and third option series which are one and two weeks further out. They are the August 1st and 8th Calls.
What do you notice that's different about these two options? They cost more because they are offering extra purchasing time.
What usually happens to stocks that spike like this? Here now is it's next day action.
This type of a chart is difficult to play. You can quickly get crushed if you try and play it on the downside. Now how does it's year to date chart look?
Things will get more interesting around August 5th before the opening. That's when their next quarterly report gets released.***Is Toyota really on the hook to spend that much money? Not really. Trump is just throwing money numbers out of a hat. Here is how Caterpillar and the Calls we were watching closed the week.
Notice the volume of trading in this weeks options is very light. I am suprised that there are not more option players jumping onboard for this ride.

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