CAT Puts

It's 10:30 on a Thursday morning and Tesla is down. Might it bounce up again and are tomorrow's Call options the way to go? That is the question. To be continued.

Why only ten contracts traded? Sure there are other platforms to trade oil contracts and Exxon's option are only one way to do it. Yet think about this. Exxon employs about 61,000 people world wide. Some are accountants watching their books. Why is their so little interest in taking positions on their companies Call and Put options? Why are there not more contracts traded on Exxon options that expire tomorrow? To me it's all so strange. Here is Exxon's five day chart. Now this, a look at some of the action as of 10:00 a.m. The 112 series of options have doubled and thw 113 series (depending at what time you got in) are have gone up even more. This is the kind of activity I look for on Thursday mornings.

It's noon on a Wednesday and here we are looking at Boeing Calls. These options with 2.5 days trading days life left in them now command a two dollar premium. Is it worth it? It means that the stock has to jump up two dollars in value in the next little while just to break even. Given it's recent track reord of good news, it's a reasonable proposition to entertain. Here is a look at what one series of Calls are trading at. Last week Boeing was up $5.61. So really at this point in time option traders considering this position are hoping for a rally this afternoon, tomorrow or the next day. One could argue that a slight upward move at this juncture might produce a 30% or 50% return in a few hours. Seasoned day traders are not afraid to take unexpected Wednesday afternoon profits. As we will quickly learn at the 2:32 p.m. mark this was not going to happen. Boeing's Calls were near their lows of the day. .............. Here now is it's five day chart ten minutes later...

Many of the drug stocks are up today (a Wednesday) on news. As an example, look at how Eli Lilly is doing. Can you catch some of this action? Let's look at Pfizer. One would think that one is to late to the party. Look now at the pricing of these Calls at 11:55 a.m. which expire in two days. This slight dip in it's chart creates an entry opportunity. With a strong upwards projectory like this dips do not last very long. This blog is about buying Calls on the tiny dip you see on the above chart. Now this, fifty-five minutes later. $.32 is now $.44. This has become a profitable trade. Can you see how the stock is up only marginally.It's 12:50 p.m.. This is the kind of trading nimble Wednesday option traders teach themslves to do. Here is how Pfizer closed the day. It did lose steam on the closing and because of this might open softer on the opening.