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Apple Options

Apple options can move quickly and they are tough to play. Product launches are highly anticipated, often delayed and widely followed. Short term options on Apple expire three times a week. The stock can move $3.00 or $5.00 or $10:00 in any given day. Do I have any special insights into how to play options on it? Not really, in this case the stock has moved sideways for most of the day after a quick morning drop. Now here is it's five day chart. Now this. So what makes these so difficult to play? It's that so many different factors can make the stock move so luck makes up a big part of what might happen next. A six dollar stock drop on Apple is more likely to experience a reversal in price than a twelve dollar drop. Let's see what happens next. Here is the $307.50 series of Calls in the last minute of Monday trading. Can you see the volume of trading shoot upwards in the last 70 minutes of trade. Let's see what the open interest is going to be going into tomorrow...
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Caterpillar Jumps On The Opening

Can you fight it?
... Why would you want to? It's not like the Stellantis opportunity we had on Monday morning.
Is the stock running out of momentum? Up over $22.00 and then up over $28.00 and then up over $30.00. Now this less than an hour later. Caterpillar takes a hit.
When Caterpillar goes up over $30.00 in fourteen minutes and you catch it (with Puts) on the downside just take your profits and run. I will show you below how it closed the day. Now a trading comment. It's difficult to fight rising stocks and in hindsight the answer to Caterpillar's meteoric rise would be in holding it's thirty days Calls purchased in the recent past. Today's situation was a mid week option trade, the one day of the week I have often referred to as being the day of reversals. Caterpillar jumped on no news and Deere just sputtered along. It's largely insituational trading and various analyist are bullish on the stock. If this kind of a jump happened on a Thursday or Friday I wouldn't be trying to play it for the downside. This was a one-off situation, something like the Stellantis situation two days ago. Now here is how Caterpillar closed the day.
...
I kind of think Caterpillar and Deere are to expensive.

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