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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 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. 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. He...
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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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