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Lucid. Options On $6.00 Dollar Stock With Two Days To Go Are Difficult To Trade

What do you think about this chart? It's one of those falling of a cliff charts. It's a Thursday morning and it looks like this stock is kind of in a downdraft. Look at my most recent blog on Rivian. The bad news on Lucid could be a hangover effect caused by Rivan's one day prior bad news story. It was talk about Rivian going back to the markets to raise more money even though they were starting to lose less of it. It was a good-news, bad- news story. A story which would take a few days for the markets to digest. Let's now look at two series of Lucid's Calls which expire tomorrow. We now find ourselves forty one minutes into the market's opening trading action. The 26 series of "out-of-the-money" Calls that expire tomorrow are trading last at $.03 cents. ... Now this. Now look a this small rebound twenty five minutes later. .. Here is where it gets a touch confusing. The $5.50 Calls which were once at $.22 cents are now $.30 and the $6.00 series of...
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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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