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Drone Stocks On A Really Bad Day

I did the math. The average one day drop on Friday on these five drone stocks was 13.93%. The D.J.I.A index on that same day was down almost 600 points. I don't play options on any of the stocks in this sector of the market. $Unusual Machines the most expensive of the six dropped down the most at 18.36% It now trades at $26.37. It has weekly options on it. Here are it's thirty and five day charts. What a nice run upwards it had last month. ... Now this. A look at how one series of it's Call options closed out the day. I see something I don't like. It's the small open interest numbers. That to me means poor liquidity whenever it comes time to execute a trade. That plus after such a big recent run upwards you would expect to see higher volumes of option trades. I have often talked about how I like trading $Walmart options because the bids and asks are so tight with instant fills. What about the other mentioned drone stocks on this list? Are they more playable? Let...
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A Jumpy Week For Caterpillar - A Week With Earning Reports

Here is Thursday's trading on the day on Caterpillar.
Here is how the $417.50 calls that expire tomorrow closed the day.
Something happened this week. Caterpillar had a quarterly earning report come out on Tuesday. It's stock trading action survived this news unscathed. Here is it's five day chart as of the end of Thursday.
Maybe the 420.00 or the 422.50 series Calls are better to look at? Here they are.
But wait. Deere got clobbered today on the release of a quarterly earning's report. Why didn't Caterpillar sell off in price in sympathy? It shoud have. Deere sold off $34.70. For this reason alone I would be more inclined to purchase the Puts. Here is the series I would consider.
To be continued. Now Caterpillar in the pre markets on Friday morning.
One option would be to sell in the premarkets and walk away. The second option would be to see how it trades on the day. Here is the answer. Caterpillar was down $9.71 on the day! It's the kinship with Deere which made this all happen.
Once again, a jumpy week for Caterpillar.
** The logic of this blog becomes more apparent if I repost the day of Deere's drop.
++++ Now this. Can Caterpillar keep it's momentum going?
Sales still look stable. Chart patterns like this scare most option traders because in some ways it becomes a game of luck. For interest sake only let's look at how Caterpillar traded on the following week up to the noon on Friday.

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