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Looking for Unusual Experiences. "BigBear".

There is a little stock that has recently started to gain an inordinate amount of attention. It trades millions of shares per day and I recently started blogging about it. It's price changes on a daily basis can be dramatic. Here once again are it's details. Now it's thirty day and five day chart. Option players playing one week options on this stock are getting wild rides. Look at this, today's one day chart. Now look at today's Puts. It's one day, six series of Puts on it traded at a low of $.03 cents in the morning and then shot up in the afternoon. $.35 cents was the high. Is there any point in taking this stock seriously and tracking how it's options are trading? Usually I would say not really however when I see millions of shares trading everyday I know that millions of Americans who can trade commission free can glue themselves to their computer screens and play like these these options all day long enjoying these two and three and ten cent price...
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Deere Is Coming Out With An Earnings Report On Thursday. It's Wednesday Afternoon.

Here is how the 510 Calls and Puts are trading. The stock is currently trading at $508.84. Last week the stock was up $9.39 cents.Last week's Calls paid off nicely. Earnings come out before the market opens tomorrow.
Now here is it's five day chart as of 2:00 p.m.
Now it's thirty day chart.
Not much action. Both the Call and Put options are expensive. They should be. Deere has a history of moving wildly on the release of earning reports. Here for example is how Deere traded on the day of it's first quarter earnings report earlier this year and what was said at that time. The spike in the chart is the day the earnings report was released.
Now back to today's situation. Notice the 510 Calls for the day are up on the day. It looks like the street is looking for a bounce. What do the $517.50 Calls and the $520.00 Calls look like at 2:23 p.m.? Notice the volume in the Calls is the same as it is in the Puts and that fifteen days ago the stock was trading about $15.00 higher in price. This tells me that the stock will have no issue jumping back up to that price range if the earning report on the opening is good. But wait, we have the tariffs and everything is changing. Farmers are getting hit. Who knows what's going to happen on the opening tomorrow. If the stock goes up it's going to be vote of confidence for the economy. What are the odds of that? Time out. People see options as being dangerous trading vehicles. They are. All options are tough to play.
Yes they are somewhat expensive but these Deere have a part two aspect to them as they don't expire until the following day. A seven or eight dollar jump on the opening would help to move the needle a touch on both the Calls and Puts. These are the riskiest trades in the world to do. This is going to a roller coaster ride. Rides like this happen four times a year. Learn to look for them. Now this.
..............................
Do you know what this is? It's the premarket trading and the stock is down. Let's go back to a look at the Puts yesterday afternoon.
Nobody is playing them. Now a 9:10 a.m. look at the pre-markets.
The morning action has now begun.
Option traders can sometimes find themselves in another world. My next blog might follow up on this same situation.

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