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Avis Budget and A Short Squeeze Plus Hertz Getting Dragged Into The Action

Hertz Global is on a terror. . Stocks in the $5.00 range sometimes do that. Yet really it's the Avis Budget short squeeze that is causing this stir. Look at how it jumped just over $105.00 dollars today. How often do you see a chart like this? It's a short squeeze and the stock is trading on high daily volumes. At one point this morning (a Tuesday) there was a "stop trading" on it. Trading options on it defies logic as they are so expensive. Look at this one example. These are the 700 series of Calls and the stock is only trading at 11:17 a.m. at $665.00. In other words they are $35.000 "out-of-the-money". Look at how crazy expensive they are. The stock would have to jump $105.00 or one hundred and five dollars by the end of the week just to break even! Who would be crazy enough to make such a bet? Day traders would be because they are banking on the effects caused by the stocks interday momentum. Let me explain this better by showing you an end of day re...
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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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