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One Day Options On One Of The Most Difficult Stocks To Play Options On. Carvana

Carvana has a dubious reputation. Insider stock manipulation. That's old news. Who knows what is going on now to cause the stocks volatitity. You Tube videos about this stock are curiously asking if they are pulling their numbers out of a hat. Here is it's five day chart and here is how their "two-day-until-expiring" Call and Put options are positioned going into tomorrows (Thursday's) trading session. .... Both are crazy expensive however they do offer two days of trading activity. That's a long time for options on a stock like Carvana. Look at the dip and the rebound it had on Wednesday. Now I am jumping ahead to Friday, the final day of trading on these two series of options. Look at this. First a five day chart showing Thursdays and Friday's action. Now it's Friday only chart. So what's important about this one day chart? This. Look at how it's Calls options traded. The Call holders lost all their money. Now look at the Puts.Thi...
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Caterpillar Drops $60.00 In Five Days - Noon On A Wednesday

In past blogs I have mentioned how light the volume of trading is in Caterpillar options. Trading them is a challenge. Deere options are also like this. Caterpillar can and does (in recent times) swing $10.00 on any given day. It is noon on a Wednesday and this the one day of the week where you can look for reversals on "one-week" options expiring on Friday. I have talked about this many times before. Here are it's five and one day charts.
Now a look at two of it's Call option series.
The 560 series actually offer excellent value given how large it's morning drop was. Who cares to check the news on it? When it drops this much this quickly the bad news, if any, is already baked into the equastion. Now the second series of Call options I am showing you are $44.00 "out-of-the-money" and expire in 2.5 days. "Out-of-the-money" Calls to this extreme are a speciailty item. In layman's terms they are a longshots. They can be excellent trading vehicles if you happen to catch a reversal in a stocks move. A reversal of like fifteen dollars over two or three hours in the near term (like today) and not on the last day they expire would move the needle on these ones. You don't need a full $44.00 reversal. One caveat is that the wide spreads can be a detriment to you in the trading experience. You have to be more than fair in picking an exit price. More about that at another time.
Now this just after 1:00 p.m.
In just 59 minutes you could exist this position with a modest profit. Or look at these ones. The stock is up $3.90 from when we last looked at it and the extreme "out-of-the-money" Calls are actually down in price. It's going to take a ten dollar or so upward swing to get this series of Calls up to a double in price. Let's see what happens.
To be continued. Notice on all of my most recent blogs I have taken the approach of getting in and out on the same day. To be continued. So here is how the 560 series of Calls closed the day.
What about the Dec.19th Calls with the striking price of 605? Here they are. They didn't do very much.
Now this, a one day chart of how Caterpillar traded. Can you see the bounce from noon to 1:00 p.m.?
...........
.......... It might jump $20.00 tomorrow. It was down $27.02 today. It's Caterpillar. Here also is how the markets closed on the day.
I didn't have an afternoon rally.

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