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Caterpillar Puts On A Friday Morning

I am getting some flack from people saying I should have called this site CatCalls and not CatPuts. Oh well, I saved money by going with name Catputs. Now this. Caterpillar closed at $647.18 on Thursday and jumped to $655.54 at 9:47 a.m. on Friday morning. Then it dropped to 641.44, the low of the day at 10:43 a.m. which was 56 minutes later. That's a massive price swing. Looking for price swings on one day options are not normal trades to be thinking about. I get that Look at how this one series of Puts reacted. Option trader as I have often mentioned are afraid to play options on Caterpillar as it defies logic and continues to go up in price. It has an earnings report coming out at 8:30 a.m. on Thursday January 29th. Try and listen to their conference call. Profits may not be as rich as some people are expecting. Input costs have risen. Now let's look at the 650.00 Puts to see how they traded on the day. So few traders attempt to trade in them. Look at the super low open i...
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Caterpillar On A Tuesday Morning After a Week The Stock Jumped $27.88 Dollars. Part Two

Here is it's five day chart going into the opening market. Today is Tuesday.
My "Part 1" blog caught yesterday's modest decline. Today Caterpillar has to deal with this new news which happened "out-of-the-blue". You don't see this very often.
Now this, a look at the 435 Puts on Monday morning at 10:02 a.m.. That was yesterday.
Will other investors start to bail on Caterpillar? Here is a look at it's premarket trading activities.
If you are an option trader sitting on the 435 Puts would you be closing out your position on this news? Gifts like this don't happen everyday. I hate to say this but I would. When you are playing one week options and have a win for reasonings totally unexpected just take your money and run. It might prove to be the wrong decision to make, however in option trading what happened yesterday is all but forgotten. Don't worry about money being left on the table. Now a look at these Puts at 2:30 p.m..
Take note of the "open interest". Tomorrow we will be able see how many holders of these Puts sold out before the end of the day. I think most will, as short term option players don't like to be in overnight positions. That plus Caterpillar started to rebound at the end of the trading session. This two day Put ride could now be over.
Check back tomorrow and we will see what the open interest number is going into Wdenesday's action. I think most option traders would have bailed. *** Here is a look at the 435 Puts On Wednesday at 12:45p.m. I was talking about.
814 is now the open interest number including four contracts trading today which is down from an open interest number of 1,227 yesterday. That means about 600 contracts were closed out. Fewer traders in the "one-week-trading-space" want to be holding this weeks options on Wednesdays and Thursdays. That is a comment I often make.

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