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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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Could A Wednesday Rebound In Tesla Be A Ticket to Success?

So here it is. A five day chart on Telsa and a look at the 322.50 series of Calls that expire on Friday. That's two days away. The pricings I show are as of 1:21 p.m. as the stock is on a slight upward rebound after selling off on a morning self induced, "Musk" tweet. More about that later.
............
Now it's daily trading chart on this Wednesday and the details of the news we referenced. There is also other news.
The Tesla story has a number of moving parts.
Here was the news on it.
The first reported pricings on the Call options shown was not until 1:21 p.m.. These Call options did trade much lower around the 10:30 a.m. mark. Given that Tesla can move like $10.00 in any given day makes interday trading option possible, especially with only a couple of days of trading left in them. Look now at how these Calls crept up and closed the day. Look at the high volume of contracts traded. It's an exhaustinng job watching all of this activity.
These are relatively tame days for Tesla options. In wilder times the premiums often cost more. Even if Tesla moves up and this blog turns out to be all good it really doesn't teach us very much. One thing I would like to point out is that playing Tesla options on Mondays and Tuesdays which expire at the end of the week have more of a "time-value-cost" built into their premiums. "Time-value-considerations" can be a concern. At least a Wednesday Tesla Call option can jump on a Thursday market opening in only a matter of minutes. They are not options you would want to be holding at the end of the day. Let's now see what happens on the opening tommorrow at 9:58 a.m.. Thursday morning.
It's all red, all down.
Welcome to trading short term options on Telsa. A waiting game begins. It would of being nice to be walking away with a fat profit. That didn't happen. To be continued. Now this eleven minutes later. Things are starting to look brighter. 2,960 Call option contracts traded during this time period.
At 1:45 a.m. Tesla is stalling out with the indexes not doing much.
This is not a fun time to be stuck in these options. Now Tesla on the close on Thursday.
It's not game over yet however it's not a fun game to be in. Friday morning. Barron's cover last weekend showed a caricature of Powell's picture. Today is his day to shine and here is Friday mornings market.
A feeling of dispair has turned into a victory. Yes Tesla options can suprise.

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