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Wednesdays Can Be Turn Around Days for One Week Options. Deere

Let's start with two charts. A five day chart and a one day chart as we approach noon today. .... ... Now a look at these two series of Puts which will be expiring this Friday. The 512.50 and the 510.00 Puts. These are thinly traded options with the built in worry of having a wide spread between the bid and ask. In some ways that doesn't matter, knowing that a ten dollar swing would not be out of the norm. More concerning however is the size of the spread on these next sightly "out-of-the-money" Puts. With spreads this far apart they would be difficult to buy into and sell out of. No one is giving away free money. Let's follow this story and see what ends up happening.
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Deere Had Earnings and Caterpillar Took No Notice

Deere had earnings which as usual were open to interpretation. Here is how it traded on the week.
It's difficult to know who to believe.
Was Caterpillar affected by any of this news? Not really. It was up $25.33 on the week.
One of it's divisions is starting to attract more attention.
Options in both of these companies are thinly traded. I have talked about this before. Deere was down on the week and Caterpillar was up on the week. One of the problems with trying to play options on both of these stocks is that they can move up or down like $5.00 on any given day on no news. Buying on the dips if you look at the Caterpillar chart seems to be a way to profit on it's options. On Deere it was to buy Puts before it's quarterly earnings report came out. So where does that put us now? Looking at Deere Calls is one suggestion thinking it's oversold. Deere was down $22.75 on the week. Yet wait, look at the volume of trading in these two longer term Deere Call options.
My point is that no one is trading them so that has to tell us something. Now this, the next week's Call options on Deere. Remember it was down $22.75 on the week. It's earnings were actually not bad it's just that this John May fellow talked the price down. That woud make his job easier to do going forward. On a weak Monday morning opening these might be something to look at given that Friday's action on a day that the markets closed at 1:00 p.m. might be overdone. Here is Friday's chart.
Charts like this are known to reverse. Here are it's one week (the first week of December) Call options to look at.
To me they look cheap but there might be some further downside on Monday as late to the action investors bail on last weeks poor performance. Will Call option traders soon be jumping into these ones? To be continued. A Monday update. Opportunities existed to get in on Monday morning.
Look at how few traders found value found value in this offering. Now shown also are the January 26th 470 and 480 Calls. These two series are attracting more interest.
To be continued.

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