CAT Puts

Here is it's five day chart. Will the 215 level provide some support? Let's also look at it's chart as of last friday. A drop then was in the cards. Can you see how Boeing started to come back a bit yesterday afternoon? Today it is seeking comfort in the 215 price range. Now this, a look at it's this weeks series of 215 Calls at just after 10:00 a.m. this morning. Two things. I don't like Tuesday Call options that expire at the end of the week and I don't like options in the $3.00 price range . Why? Well one reason is that the stock would have to make a signifiant move to the upside to make these options double in price. In one of last week's blogs I talked about Exxon options quadrupling in price. Look at how that stock's price jumps around. With Exxon options each one dollar move in the correct direction would be a near double. It's option series are set up in 50 cent increments. Now back to Boeing again, this time at 10:48 a.m. The 215 Calls...

Ford Call Options on a Monday morning that expire at the end of this week. Had you bought the Calls on it on Friday morning that expired that afternoon you would have made out very well. Here is what Ai says. Now this, the 12 series of Calls options on a Monday morning that expire at the end of the week. They took a slight dip. Here is it's Monday morning chart. Here is a look at the same options twenty one minutes later. Traders have bought in on this dip. Is this trading strategy, buying this weeks Calls on a Monday morning on a stock hitting a fifty-two week high a prudent thing to be doing? Or could this be a question of coming to the party to late? This is the concern. Why not purchase instead "in-the-money-Calls" with one month's trading life in them still to go? That would be a safer strategy. Their next earnings report comes out on October 27th. Here is how other stocks are trading. It's a mixed bag. So now it becomes a waiting game and this is on...

$2.25 for a Call option already $1.28 in the money with only 541 open positions.That's where things are at going into Friday morning's trading action. Now this premarket news. Now this. Now this at 11:00 a.m. What are the odds of this happening? Well it's a company with a million moving parts and it's a company that can suprise. In a way I was happy to see the "open interest" numbers being so low going into the morning's action. Insider's don't appear to be tipped off on this good news. Ps. Here is how it ended up closing the day. It jumped on the opening and stood it's ground. Could you have made any money buying Calls just as the markets were opening? Not really as here is how it traded on the day. You could have made money however if you bought in on the first early morning dip and then gotten out about twenty-five minutes later. That's a strategy sometimes employed when trying to play "last-day-expiring" options. The play...

Yet even after a drop like this it's five day chart looks somewhat normal. Now it's one day chart shown just below. On first glance it looks like its moving somewhat sideways however if you look closely you will see ten and twenty dollar interday price swings. Look at the high volumes of trading in it during the first thirty or forty minutes of trading as the stock zig zagged around and then more volume pouring into it around 2:00 p.m. when a second wave of selling pressure hit. Imagine getting into Puts around 1:00 p.m. and getting out around $2:00 p.m. Auto stocks in general did poorly on the day. Now look at Tesla's 30 day chart. We just had a 30 day period of scorching upward moves. Why fall into a trap of now trying to outguess this action? Note now I have mentioned 1:00-2:00 p.m. selling pressure on a Thursday afternoon. During that time period there was a fear of a second wave of panic selling. Short term option players have to learn to "focus on the moment...

Is this one of sethe first of more of the same kind of reports to come? Sales down 4.1% is not really all that bad a number but is it a precursor of more of the same to come? A ten dollar hit on the stock shows you the anxiety in the air with the possibilties of any sort of a rebound on the day next to nil. Carvanna is reporting more insider selling. It's sitting at lofty prices. They have a reputation for stock price manipulation and to have more news of insider selling coming out at this particular time of uncertainity is not a good thing. Here is how these two stocks opened on the day. First Carmax, it's down $12.00 Now Carvanna. It's down $13.00. Here is how two other major players in the same space also got hit. Bad news travels quickly. Welcome to the world of third quarter earning reports. In some ways these results were inevitable. *** Here is how these stocks mentioned closed the day. Here is how Carmax ended up closing. Trying to play it for tomorrow would b...