Featured

Boeing" And "Tesla" On A Nervous Opening. Both Are Worth Watching

Boeing's chart. It's Calls that expire this Friday. A flat five minutes on the opening. Tesla, now 24 minutes into the opening is also deciding what it wants to do in this space. The Tesla Calls expire tomorrw while the Boeing Calls don't expire for four days. Here now is a look at the Tesla Calls with the same striking price which expire this Friday. They cost more than double to purchase however this printout is 25 minutes later after the stock has rebonded over $3.00. What attracts me to these two situations? First they both dropped a chunk in price on the previous day. Boeing has a cloud over it's head with rising oil prices and concerns about the debt the country is piling up on defense spending and Tesla is caught up in SpaceX coming soon news which is getting a lot of attention. It's a case of buying on the dips and discounting the possibilities of the bottom falling out of both of these stocks. Now a 10:30 a.m. look at these same Boeing and Tesla options...
Post a Comment

Bad News On Caterpillar Going Into a Friday.

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 off this bad news. These two stocks tend to trade in similiar ways.
Here are the 435 Puts on Caterpillar at 9:35 a.m.
There is no real volume on them. Everyone was caught by suprise. It will be interesting to see if other companies start to make announcements like this? Is this a precursor to more bad news? Now some more late morning action. A second shoe has fallen.
It keeps falling. When can you start thinking about buying the Calls? Here are the one day Calls at 1:03 p.m. followed by what they ended up closing at the end of the day. Why even try to sneak in this kind of a trade? THE TIMING IS TO DIFFICULT.
After the $1.09 mark just after 1:00 p.m. they slipped down to $.45 but it was difficult to pinpoint a time when the stock would reverse. Next weeks Call options became a safer consideration. Here is a look at the Cat Calls one week out at 12:26 p.m. and at the end of the day. The question at 1:06 p.m was the question of whether or not it's to early to be thinking about a market reversal? At that time that was the million dollar question.
Here is how they closed the day.
Monday brings more bad news.
Now this, ten minutes into the trading session. At 9:40 a.m. Cat is down $8.38 and at 9:41 it's down $6.91. Here are two different series of Calls now not attracting any attention. The 405 series of Calls which are "in-the-money" might appear to be super expensive however they would be the ones most likely to benefit from a upward rebound.
Now this at 10:07 a.m.
$2.30 was the opening number in this morning reversal.
The 417.50 Calls did pop upwards on Friday morning to help make for a happy ending,
The 405 Calls also benefited.
The big suprise is how few players are now finding interest in playing Caterpillar options.

Comments

Post a Comment

Popular posts from this blog

Waiting For A Drop On The Opening On Bad News - Eli Lilly

Image
Here is the bad news. The company is Eli Lilly. How bad is this news? Well look at it trading in the premarkets. So what do I think? I think the news is a setback of sorts, but not really all that bad. The stock is going to open lower, that's a given. It's like trying to play Boeing after an announcement that an airplane has crashed. So the stock is going to crash and it might have a small rebound and then it's going to slide down some more. A test of sorts will happen sometime in the afternoon. It might stock falling but then where will it go from there? The best case scenario is a recognition that investors got it all wrong and the stock ends up flat on the day. Yet there might be more of a downward dumping of the stock on the close followed by a selloff on tomorrows opening. Should option players be jumping in to play the upside on next week's Calls? That is the question. Here is a look at Boeing on the days after a crash. Day two after the crash was equally as ...
Read more

A Fireside Chat - One Year Options and Thirty Day Options. Which is Better?

Image
Some say to think small, not big. Trying to play Disney options is thinking big. It is a stock slightly out of favor. If we start with it's a three year chart, we will see it is down by about 50% over that period of time. Now it's one year chart. If the stock can break 110 in early 2024 the sky is the limit. It does have a lot of moving parts so anything could happen. Look at these Calls options one year out. One year in options buys a lot of time.They look reasonable. If the stock ever inched up to the $105.00 price level in the three or four months these options would jump up in price by about 50%. Even more if they had really good news. Yet it's the "what-if" aspect of the equation that castes such a trade in doubt. "What if" stories just don't cut it. There are to many variables in play. Then again, why are we even thinking of long-term Call options after a December's rally? Let's switch gears. If consumers are out spending for X-ma...
Read more

News on Polestar , Lucid (Trading After A Reverse Stock Split) Plus Ford News And Vinfast

Image
Look at the one year chart on Polester. Now it's one month chart. What's going on? It's confusing. It was down $.36 cents on the week. If you want you can spend $.20 or $.25 on Puts and hope that the company goes under in the next five or six months. They recently raised more money by releasing more shares so it's running out of options. You can't run at a loss forever and this news will most likely scare off potential new car buyers. This actually is a low number of outstanding Put options. The consensus seems to be that it is not game over yet. Lucid started trading this week on a "one-for-ten" reverse stock split. Here is its one week chart. It was down $1.39 on the week. It's also going to struggle. Both of these stocks have challenges ahead. On a more positive note here is a chart that looks kind of perky. Ford on the week. The stock was down $.03 cents on the week and it was the 3th highest in share volume trading on the NYSE. It appears...
Read more