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Caterpillar And Tesla. These Are Scary Times To Be Trading Options.

We are witnessing huge intraday price movements on stocks like Caterpillar, Deere and to a lesser degree Tesla. Tesla sales are off in Europe as BYD continues to drop off boatloads of new vehicles into countries never before receptive to their offerings. Other companies in other industries are also facing scary times. Nvidia's recent earnings report has helped to validate that teck stocks still have relevancy. Things for them only a few weeks ago kind of looked scary. "Market rotation" is now the new theme in the spotlight as investors worry about where to park their money. Caterpillars and Deeres recent meteorological rises are under attact. Tesla has a price earnings ratio which is sky high. What's that all about? Silver stocks continue to rise and Bitcoin holders are not sleeping well at night. The price of gold has gone up and is not showing signs of coming off. People are now wondering if they should be lightning up on the weight of their jewerly boxes. Investo...
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Caterpillar Calls Rock

They keep going up.
Yet this morning, a Monday morning the DJIA is down.
Can you fight a strong stock or are you just throwing money into the wind? Deere, Caterpillar and Boeing are all also on an upward terror. Now a look at these Caterpillar Puts at 10:41 a.m. which expire at the end of the week.
The open interest in this series of Puts going into todays trading session is zero. What about the action in the Calls. Are option traders playing them? Well yes and no. The 630 series of Calls have almost doubled on in price on the day but the volume of trading in them is not all that inspiring.
Now let's go back and look again at the 642.50 Puts we looked at back at 10:41 a.m..Here is how they closed out the day. The D.J.I.A. index never came back.
Shown above is Caterpillar's one and five day chart. Is this "step-up" chart formation suddenly starting to crumble? That's the question. Tomorrow openings will likely see Caterpillar up or down $5.00. Maybe this time, given it's late the day weakness it will drop. Fighting a strong stock is a dangerous game few want to play. To be continued. Wednesday morning. No trades in the first 20 of trading. Trading options on series with low liquidity creates it's own set of challenges. Something will have to give shortly.
Now this. Yes you can sometime fight rising stocks. It helps that the DJIA keeps falling.
..
.....
Thing are now jumping around sideways.
To be continued. On Thursday Caterpillar resumed it's upward trend.
Put holders have take their profits quickly.

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