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Caterpillar Is Misdirected.

It's five day and one day chart.
It dipped on the opening this morning and the 'buy-on-the-dips' mentality won again. Like a $7.00 interday jump in one series of it's Call options as witnessed on the second chart below.
Now it's 30 day chart.
This is madness. How can a stock keep going up? Now this, a chart borrowed from a Caterpillar blog I posted on December 26th. That wasn't that long ago. It tells a different story. It shows Caterpillar dropping thirty dollars in one morning!
So here we are now in a situation where Caterpillar is up $30.00 in three trading sessions. We are in the premarkets on Wednesday morning. Wednesdays can be good days for market reversals. Here are the 630 series of Puts that expire this Friday. The open interest in them as with all of Caterpillars options are very low.
The stock given it's premarket pricing is expected to open slightly lower than it's closing price. This $600.00 dollar pricing is in $U.S. money so it is like $1,000 Canadian. So the question is how much faith do you have in Caterpillars current market price. A second question is if you got in around $600.00 and then had the oppportunity to get out around $850.00 a few hours later would you take it? I might. Allowing yourself to play the option markets with these premarket thinkings is a "big boy super speculative" but enormously satisfying approach to be playing options. I can't guarantee that this approach will pay off however this recent $30.00 price increase seems excessive. A 9:04 a.m. update. It looks like Caterpillar is going to open up.
Now this. Good news on the opening!
....
The Puts jumped up 98% in nine minutes. Mid week option trading in last week to expiring options is a sweet spot in the markets. The picking of a stock to play this time was somewhat obvious. ** A 3:10 p.m. update.
This was a high reward trade. Here is what the indexes are doing.
Now here is how the 620 Puts closed the day.

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