Featured

Boeing Puts At 10:24 A.M.

Here they are. What I want to show you is the open interest at 10:29 a.m. and the open interest as 10:31 a.m. I have talked about this before, computer generated traded kicking in at 30 minute intervals. Now this. Nothing happened. In option trading there is always a bias to the upside. What this tells me is that fot the next ten minutes of so I don't see Boeing surging upwards. Here is it's morning chart at 10:43.a.m., thirteen minutes later. Now the Puts. Now the Put action at 11:20 a.m. with the D.J.I.A up 460 points. One option at this point in time is to give up and sell out and get your money back. Most traders don't think that "one-week-options" offer this versatility. They do. Getting back your money playing Puts on a morning the D.J.I.A is up 460 points is a win in itself. Just get out and look at this situation on a day the indexes are not so strong. Here is how Boeing closed the day. This trading activity never ends.

Caterpillar Has It's biggest One Day Drop Of The Year - And Then Up $47.00 Dollars

Look at this five day chart.
At 9:45 a.m. yesterday Caterpillar was trading at $720.49 and then 3:51 Hours later it was trading at $676.95. That's an interday drop of $43.49 or a $12.40 per hour drop. What caused the drop? Bad news about the U.S. economy. Is the stock that fragile? What bothers some current shareholders is the infrequency company news releases. Yet thnm again, earning reports tell the entire story. Investors need to hear more about a better plan to go forward. One possible solution would be for Caterpillar to spin off different divisions while still maintaining partial control. The gold miner Barrick for example is now announcing a new public offering of a subsidiary that would hold it's North America gold assets. Caterpillar could do the same, perhaps spinning off it's Solar Turbine division now operating as a subsidiary. That could unlock hidden value. Here is what Ai says about the advantages of making such a move.
All I know is that the stock Caterpillar is becoming a less friendly company to trade options on. Other traders already know this. Very few option traders trade Caterpillar options. Now this on the following day at 10:35 in the morning.(Feb. 5th). Caterpillar is down again.
That makes for a drop of $69.00 since yesterday morning. See my Feb 2nd blog "Caterpillar Calls Again". ** Friday was another suprise.
...
Look at the volume of trading in one series of Calls on Friday. Trader's are afraid to trade them. Caterpillar is on steroids. These Call options went up tenfold. Friday's this strong are a rare occurance.

Comments

Popular posts from this blog

Waiting For A Drop On The Opening On Bad News - Eli Lilly

News on Polestar , Lucid (Trading After A Reverse Stock Split) Plus Ford News And Vinfast

A Fireside Chat - One Year Options and Thirty Day Options. Which is Better?