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Why Disney Options At This Point In Time Should Be On Your Radar Screen

Very few option traders trade short term options on Disney. The first two printouts below help to illustrate this point. Look at how low the open interest was last Friday on one series of it's Calls and one series of it's Puts. .. Most traders of these options are focused on making interday trades. The low open interest on both of theses series of options tell us that. Now look at how Disney traded on Friday, the last day of the week. Many of the trades made are AI induced. Reversals happened in the morning for example at exactly at 9:31:00 a.m., 9:33:00 a.m., 9:37:00 a.m., 9:41:00 a.m. and other times all to the second of the minute.That's a big the hint it's Ai trading. Now it's one month chart. Disney is down. Now a five day chart. Here is where it gets interesting. What it shows us is that some one week Put options would have doubled in price on a Monday and some Calls would have doubled in price on a Tuesday and the Puts would have doubled in price on a Wed...
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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 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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