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Is Tesla A Good Robot Play?

There's going to be pushback if Musk decides to turn his auto production lines into robot making production lines. That's a new fear. It is also noted that used Teslas are dropping in value quickly. Tesla was down in price $5.62 last week. How is Musk going to make this new venture work? Might his first generation of robots like his cybertrucks quickly become obsolete? If you think about it, maybe existing shareholders are already lightening up on their stock positions knowing that a bumpy ride could soon be on the horizon. Now a new topic. How much do the "three-month-out-Calls-and-Puts" on Tesla cost? That's a fair question and here is the answer. Now we also need to look at how it has traded in the last three months. The stock is down about $60.00 over that period of time. Anything is possible with these three month out option series. Now this, Tesla drops on the Monday February 23th opening. The markets are having a bad day. Look now at what the May 26t...
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Cat Calls

The markets opened stronger on a Friday morning and Caterpillar Calls jump over $8.00 in the thirty five minutes of trading. Look at the volume of trading on this series of options. Seven contracts! These are the Puts. What if the opening markets tops out? That volume of trading in the Puts is nothing.
Let's compare that number to the number of Calls on this series of Tesla Calls at the same time in the morning.
7 vs 17,309. Crazy. Why are people so afraid to play Caterpillar Calls when the stock has had such a strong surge as of late? Now let's move forward and look at how these two series of Caterpillar options are trading a few minutes later at 10:35 a.m.. The Calls are up even more which draws are attention to what the Puts are doing.
Notice the wide spread in the "Bid" and "Ask" on the Puts. This indicates that the option market makers are in a particulary vulnerable spot. Now this, the markets have changed. There was Trumph and China tariff news.
Caterpillar dropped.
It's just after 11:00 a.m. and the Puts paid off big time. We saw the Puts at 10:36 a.m. trade at $1.50 with a wide "bid and ask" ($1.25 and $2.63) and someone was lucky to get a fill after that time at $136.00. Now that all of this action has happened I would say it's time to sign off for the week. Here is how Caterpillar was trading at noon.
Here are it's end of day readings.
$1.32 went to $16.50. Not many traders caught this one.

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