CAT Puts

What's going to happen with the options on Ford today? Can daytraders expect to make money trading them? Let's try and answer this question. This blog is not as easy to read and understand as my previous blog on "last-day-option-trading" on the stock Tesla . Tesla has bigger one day price swings than Ford does. Here is what Ford's one day chart looks like as of 11:00 a.m. on a Friday morning. Let's back up a little bit. Look at how thse two series of Calls and Puts at 9:40 a.m. are trading. They both expire today. ..... If the stock was to rebound suddenly up to the $13.05 range the Calls could go up to $.13 or $.14 cents a contract from their current $.11 ($11.00) per contract price. It's best to buy them in quantities of 25 or more contracts at one time. If you lived in the U.S. and got free commissions trading, options like this could be a very quick and profitable experience. In Canada where I live not so much so. The commissions would eat up a chunk...

Here is Tesla's one day chart on Thursday. Now here is how the 440 Calls and Puts closed the day on Thursday. The 430 Call contracts cost $5.25 and the 430 Puts cost $4.97 going into Friday mornings action. In the premarkets just before the opening the stock was up almost eight dollars. You can see that in the list of auto stocks below. Then in the premarket trading around 9:28 a.m. it was only up about $5.00. An "at-the-market" ticket to purchase a Call option at 8:00 a.m. would have added another profit of about $300.00 dollars on the opening bell. There are times however when premarket moves vanish in the blink of the eye before the market actually opens. I have witnessed that happen many times before. So what happened? Well the Calls doubled in price in the first six minutes of trading and the Puts obviously got beat up. ....... Yes the Puts really got beat up. As a Call holder you can walk away from this strong opening and say thank you. That's what trading ...

Boeing released quarterly earnings today. The stock got smoked. Now it's three month and one month charts. What was the bad news today? Could this be one of those bad news is actually good news situations? Afterall, Boeing keeps on pumping out more airplanes. The problem is they keep losing big money. That's a big problem. All I know is here is how this one series of Friday Call options are trading at the close of Wednesday's session. To me they are far to expensive. It might take some time to shake off this bad news syndrome. Now this on Thursday morning. Remember the 212.50 Calls we were looking at? They got smoked. Now with one day to go these options have popped up on the radar screen. The 205 Calls when Boeing is at $206.61. Charts like this usually end up going sideways or slightly down for the rest of the day. Here they are again 31 minutes later later. At this point in time charts like could turn around. Might this be an opportunity to consider? Should yo...

This is a long blog but try to stick with it. The good stuff is near the end. I am referring to what happened to one option series on Thursday afternoon which is the essence of short term option trading. First the five day chart. For this chart to have more impact let's look at it back to the day it really jumped. Is this good news substainable? Here now is it's 1:07 pm Tuesday look at the action. It's moving up again. Here is what the D.J.I.A. is doing. Now this the Puts at 1:06 p.m. These are the 70 series of Puts which expire this Friday. Today is Tuesday. The volume in them is next to nothing. G.M. is going up. It seems kind of stupid to be thinking about them going down. Yet a lot can happen in three days. Here is how they closed the day. Here are other "out-of-the-money" Puts. Let's watch and see what happens. Let's start with the 68 series on Wednesday at the close. They held their ground as G.M. was off a touch. What about the 67 series? N...