CAT Puts

Here is how the stock traded on a Thursday.There was nothing unusual about the day. I am suprised they would dump this news on the market going into a Friday trading session. It messes up option traders. Doing this type of an announcement on a Tuesday prior to the markets opening would be a less disruptive day to do this. Here is the news. In a way this wasn't totally unexpected news. As they said, there were several other recent updates on this issue. Auto companies in their recent quarterly reports were also harping on this issue. Look at how it dropped in price in the "after-market" trading. Now here is how one series of Puts closed the day. No one could trade them as the market opened lower. Look at how this news totally caught the markets by suprise. The secrecy of this news is a credit to Caterpillar. If Caterpillar had this news are Deere Call holders going to get worried? Here is what happened on Friday morning. Now Deere, which is now also trying to shake of...

If you are already a repeated player of Tesla options this blog will have little value to you. I ask, what level of option trading are you at? Are you able to make money trading Telsa options in less than five minutes? Perhaps that needs to be rephrased. Are you able to consistently make money trading Tesla options in five minutes? Last Friday Tesla jumped $16.50 in one day. What a ride Call holders had that day. It's Thursday morning August 28th and here we are looking at Tesla options which expire the very next day. One look tell you that they are prohibitively expensive. Here are the 350 series of Calls and Puts before the opening bell. Can you see the numbers $5.00 and $4.81. That is how much they cost and all they both offer is a ride on Tesla options for two trading sessions. Here is it's chart. Now what? Is there an opportunity to be found here? Well a rise in price two dollars on the opening will cause the Calls to jump about 20% and a fall in price by the same amoun...

Let's start with a good news story back on July 22nd. That wasn't that long ago. Now this news. Remember the old days? If you look at it's five day chart below you will see how the stock dropped on that news and opened stronger on the next two sessions. That should tell you something. I don't know what to think about all this. If it starts trading at $10.00 per share and sinks to $7.50 and then comes out with some crazy news like they did in July then the stage could be set for another rebound and if sales then start to go up they could come back to the markets to raise some additional money. That's a lot of ifs. Let's watch the remainer of this week to see if the open interest in the January 2026 and 2027 $2.00 Calls continues to go up. Remember ten Calls will become one Call and the new striking price will be $10.00. What are visionaries now thinking? To be continued. A Friday Sept.99th update at 12:50 p.m.. Now a look at the Jan17th 2026 Calls with a str...

Here is it's five day chart going into the opening market. Today is Tuesday. My "Part 1" blog caught yesterday's modest decline. Today Caterpillar has to deal with this new news which happened "out-of-the-blue". You don't see this very often. Now this, a look at the 435 Puts on Monday morning at 10:02 a.m.. That was yesterday. Will other investors start to bail on Caterpillar? Here is a look at it's premarket trading activities. If you are an option trader sitting on the 435 Puts would you be closing out your position on this news? Gifts like this don't happen everyday. I hate to say this but I would. When you are playing one week options and have a win for reasonings totally unexpected just take your money and run. It might prove to be the wrong decision to make, however in option trading what happened yesterday is all but forgotten. Don't worry about money being left on the table. Now a look at these Puts at 2:30 p.m.. Take note of th...