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Eli Lilly

When a stock drops over $50.00 in the first three hours on trading one a day and when the DJIA index is up can you play it for a one or two day partial rebound? $9.00 or nine hundred dollars gets you in. That's the question now being asked and based on the number of new Call contracts being purchased the answer is probably no. As of 11:50 a.m. I can't find any news to explain this drop. Now this, if you just came off a morning gain from trading Tesla Calls, see my last blog might you be willing to part with some of these winnings? This could be another short term opportunity given that the D.J.I.A is so strong. Lets check out the action in thirty minutes. The stock is up $3.81 and the Call options went from $9.00 to $11.80 in thirty minutes. Do you take the money and run? Very few traders are speculating in this series of Calls. There is the danger that in this kind of situations that a second shoe could drop at any minute. Yet the DJIA continues to remain positive. That sho...
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Boeing Jumps Ten Percent In One Day!

1) It's chart.
2) A look at how two series of Calls reacted to this news. This time around the volume of options in these two Call positions and other Boeing Call option positions spiked. What a poor way to be offering this kind of guidance.
3) The news. The exact wording of what was said by it's C.F.O. can be found on other news outlets. It wasn't presented in formal way or in a clear and professional manner.
4) Here is why the timing of this news was so welcomed. Here is Boeing's news from 31 days before. What a different story.
One month ago Boeing dropped to $205.00 on this news. The bottom line to all of this is that this kind of "happy days" news is putting so many other stocks like Caterpillar in unchartered territories. It's all kind of like walking on eggs.
5) As just mentioned, Caterpillar today also jumped up on this burst of euphoria. Caterpillar didn't really have any good news of it's own.
6) Deere recently had a decent earning report which was watered down by it's reporting officiers. I am waiting it to start kicking itself back up again.
There is so much about all these upward spikes that doesn't feel quite right.

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