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Option Trading Strategies To Avoid.

Ford Call Options on A Monday morning that expire at the end of the week. Had you bought the Calls on it on Friday morning that expired that afternoon you would have made out very well. Here is what Ai says. Now this, the 12 series of Calls options on a Monday morning that expire at the end of the week. They took a slight dip. Here is it's Monday morning chart. Here is a look at the same options twenty one minutes later. Traders have bought in on this dip. Is this trading strategy, buying this weeks Calls on a Monday morning on a stock hitting a fifty-two week high a prudent thing to be doing? Is this a question of coming to the party to late? This is the concern. Why not purchase instead "in-the-money-Calls" with one month's trading life in them to go? That would be a safer strategy. Their next earnings report comes out on October 27th. Here is how other stocks are trading. It's a mixed bag. So now it becomes a waiting game and this is why I called this ...
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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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