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Step Down Charts And Short Term Options. Nio

Here is a classic "step-down-chart" with one minute of daytime trading life left in them before the markets close at 4:00 p.m.. The stock is Nio. ... This printout of "in-the-money" Call option also shows one minute of trading life in them before the market closes. It's Tuesday and these Calls expire this coming Friday. You are purchasing three days of market trading life. To purchase one thousand shares of this stock would cost you $5,750.00. To purchase options that control the price movement of one thousad shares of this stock for three trading sessions would cost you $370.00. ( Ten contracts at $.37 each). These Calls are also currently $250.00 "in-the-money" which means if the stock totally goes flat for the next three days your options will still have that amount of intrinsic value left in them. Now think about this. Many option accounts in the U.S. enjoy free option trading and there are discount brokers in Canada who can save you money. A fl...
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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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