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Why Disney Options At This Point In Time Should Be On Your Radar Screen

Very few option traders trade short term options on Disney. The first two printouts below help to illustrate this point. Look at how low the open interest was last Friday on one series of it's Calls and one series of it's Puts. .. Most traders of these options are focused on making interday trades. The low open interest on both of theses series of options tell us that. Now look at how Disney traded on Friday, the last day of the week. Many of the trades made are AI induced. Reversals happened in the morning for example at exactly at 9:31:00 a.m., 9:33:00 a.m., 9:37:00 a.m., 9:41:00 a.m. and other times all to the second of the minute.That's a big the hint it's Ai trading. Now it's one month chart. Disney is down. Now a five day chart. Here is where it gets interesting. What it shows us is that some one week Put options would have doubled in price on a Monday and some Calls would have doubled in price on a Tuesday and the Puts would have doubled in price on a Wed...
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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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