Here is it's chart on the day as of 3:37 p.m. There is recent talk of Trumph helping the farmers with bailouts..
It's a Thursday with options on this stock expiring tomorrow. I want to show you how some of the "out-of-the-money" Call options have traded today. First here is how the markets are doing in the late afternoon.
Now look at these three series of Call options. They are all "out-of-the-money" Call options.
What are the odds of ever catching this action? It would of have required the mentality to be willing to buy them on this morning's dip. That plus the stomach to purchase Call options which are "out-of-the-money" with only one day to go. It's not everyone's cup of tea. I get that. So once again, Caterpillar has had a healthy upsurge on the day. Would it make any sense to be looking at tomorrow's Puts? Well check out this one series of "at-the-money" Puts.
They actually look very reasonable in price. So the question now is why are so few trader's finding value in them? One reason is that if Boeing jumps a bit on tomorrow's opening these Puts could quickly lose half their value. Boeing's five day chart will now help to better put all of this into perspective.
Getting into Caterpillar Calls on Wednesday morning was the real way to go. Wednesdays are often reversal days. Option traders must learn to watch the markets for these types of moves. ** On a different note, think of the massive amounts of money made on today's Call options. I find it now strange that so few traders are willing to gamble on tomorrows opening. Let's check next weeks Put options with the same striking price to see if any of today's profits ended up going there. Here they are.
The answer appears to be not really. There was only one open contract outstanding going into todays trading session. This means no one had the appetite to be fighting this charging stock. I also get that. Let's see what happens tomorrow. The question is, are option traders smart to be avoiding Caterpillars potential to drop in price tomorrow? We will soon find out. To be continued. It's now 9:52 a.m. on Friday morning. Here are the next week out Puts.
What about the 625 Puts which expire today? It's now 10:00 a.m.
Now 10:18 a.m.
Now this.
Notice the volume of trading in these Puts. No one is catching this action. Yet another look just before noon.
If you have profits from catching this action maybe it's time to look at the upside. Look at how few option contracts have traded on it on the day.
To be continued sometime after the markets close today. Here is a look at how the 600 series of Calls traded on the day.
The 600 series of Calls jumped up to $13.94 at 1:23 p.m. Here is a final chart of how caterpillar closed om the day.
What a voyage it had!
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