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Cat Calls

The markets opened stronger on a Friday morning and Caterpillar Calls jump over $8.00. Look at the volume of trading on this series of options. Seven!.
Let's compare that number to the number of Calls on this series of Telsa 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. The Calls are up smartly which drawws are attention to what the Puts are doing.
Notice the wide spread in the "Bid" and "Ask" on the Puts. This tells us that the option market makers are in a particulary vulnerable spot. Now this, the markets have changed.
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. Let's end with a look at how Caterpillar is trading at noon.

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