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Caterpillar Puts On A Friday Morning

I am getting some flack from people saying I should have called this site CatCalls and not CatPuts. Oh well, I saved money by going with name Catputs. Now this. Caterpillar closed at $647.18 on Thursday and jumped to $655.54 at 9:47 a.m. on Friday morning. Then it dropped to 641.44, the low of the day at 10:43 a.m. which was 56 minutes later. That's a massive price swing. Looking for price swings on one day options are not normal trades to be thinking about. I get that Look at how this one series of Puts reacted. Option trader as I have often mentioned are afraid to play options on Caterpillar as it defies logic and continues to go up in price. It has an earnings report coming out at 8:30 a.m. on Thursday January 29th. Try and listen to their conference call. Profits may not be as rich as some people are expecting. Input costs have risen. Now let's look at the 650.00 Puts to see how they traded on the day. So few traders attempt to trade in them. Look at the super low open i...
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Another Attempt To Explain Exxon Options.

There are times I feel safer playing Exxon options than I do playing options on other stocks. Why? Well today this happened and the options didn't move all that much.
What the heck was all that stuff? It was information that flows. It's humbling to read it. There are so many parts in motion which somehow mesh together to create Exxon's price at any one momeent. What I like about trading Exxon is that when it moves, it moves quickly. That plus when it does move the options on them move a chunk at a time. That can be a good thing. Here is Exxon's five day chart. It's had some recent really big moves.
I picked something difficult. Two series of options on Exxon that expire at 3:00 p.m. tomorow. Here is how they closed today, a Thursday. Let's be clear. This is not a situation I would like to be in.
Which way is the stock going to move on the opening? I note that there are four times more Calls outstanding than there are Puts. It's not uncommon to see things set up that way. One last thing. A chart showing how Exxon just finished out trading on the day. This time it's pretty boring.
Let's see what happens tomorrow. It opens flat. Here we are 36 minutes into the trading activity.
......
What a swing. Look at how cheap the Puts have suddenly become. Now the end of the story. First a chart showing how Exxon traded on the day.
The Calls hit a high of $1.68. Exxon options are known to move boldly.

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