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Part Two Of What McDonald's Is Doing?

Nobody knows whats going to happen tomorrow. Let's jump forward. $1.64 or $164.00 dollars plus commissions will buy you one "310" series of Puts. In the first twelve minutes of trading only one contract traded. That just shows you how dangerous these option contracts can be. We are not talking about a one day move at this point in time. For option traders holding positions like this which were bought for quick flips an hour of watching the stock becomes a guessing game. Here it is now about seven minutes later. Note this, the pain continues? What's the DJIA doing? This becomes the path you are now on and it's to early to think about it becoming a dead end. If you still like the situation then yes you should buy more if you can afford to lose. Perhaps you made a big score on Disney Calls on the previous day. I have talked about that. Now this at 11:09 a.m. Still the same number of contracts traded. Hold these thoughts. Look at how the 310 Puts and the D.J...
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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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