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

Caterpillar On A Monday Morning After A Week Where it Jumped $27.88

What do you think the stock is going to do this week? Here is what it did last friday.
Now here is what it did in the last 30 days.
If you think it might go down on the week here is last Friday's closing price on one series of Puts which are just over five dollars "out-of-the-money".
Can you see they cost $2.96 per contract and only 119 of them are outstanding? Option traders on last Friday's close were not rushing into buy them. But wait, why not buy the Puts closer to the stocks current selling price? Why not buy the 435 series of Puts? Well they cost more. The 435 Puts last Friday closed at $4.93.
The 435 Puts would be more sensitive to any minor dip on the opening however Caterpillar could still easily gain another five dollars on the day. That's why the interest in these Puts is so low. Here is what Wall Street thinks.
So what do I think? I know this stock reserves respect and it's hard to fight any stock in such a strong uptrend. Here however on a Monday morning is a chance to catch a slight pause in this stocks recent upwards projectory. Weekends often provide market resets. The 435 series of Puts could jump 20% or 25% in the first fifteen minutes of market trading making for a quick trade. Let's see what happens. ** It's 10:00 a.m. and no such luck. The DJIA is down and Caterpillar sits very much unchanged.
Now a look ten minutes later. Look at how the stock has dropped. Finally the Puts are starting to go up and the volume is increasing in them.
Now here we are another ten minutes later.
Here it now at 23 minutes later.
Now here is a look at it's five day chart. What do you think about this type of chart?
Here is how Caterpillar the two series of Puts we are watching closed the day.closed the day.
........................
There is news on Caterpillar.

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