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Why The Appeal Of Trading Caterpillar Options Is Now Diminishing

In previous blogs I looked at Caterpillar spiking upwards through the $1,000.00 barrier for the very first time. Twenty and thirty and forty dollar daily jumps on the stock were the norm. Today we are entering more sobering times. Pundits are now commenting on the upcoming release on August 4th of Caterpillar's quarterly earning report. That is not far away. The stock has doubled in price in a relatively short period of time. Is the party over? Look at Caterpillars one year chart. The companies earnings have not doubled in the last year. Far from it. So now what? Buy a Put option thirty days out in the hopes the stock might drop ten percent on a more normalized earning's report? Maybe. Here is an example of the cost of what one of these Puts would look like. Given it's current bid and ask the stock would have to drop to the $1,005.00 just to break even. It could, however most active option day traders are seeking opportunities which can play out in hours or in a day. Case...
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Exxon On A Major One Day Dip. Will Trumph In His Usual Way Add To The Confusion After The Market Closes? That's The Bet

It's Wednesday and Exxon has had its's biggest dip on the day in a long time. The DJIA is up.
Here is it's chart as of 1:27 p.m.
Now it's Calls that expire tomorrow.
The trading volume on these contracts is relatively light. Retired U.S. Generals are coming forth and saying Trump has no strategy and just wait until more soldiers get killed. Yet four hours ago and three and two hours ago Exxon was trading at higher prices. Why now? Why an interest in looking for a rebound? Chevron is also down over $11.00. Let's also look at it's Calls.
This time we are looking at Call options $2.00 or so "out-of-the-money".
These are both high risk trades. Picking a bottom is never an exact science. Let's see what happens. Now this around 2:25 p.m.. Notice a slight rebound in both of these stocks.
...
To be continued. This new situation might keep you up all night. A late night report might help. Here is one.
Let's see what happens.
Now for the Thursday morning jump.
.....
With the markets being closed tomorrow for Good Friday and with troops in boats rushing over to do combat a jump like this on this morning makes sense. **** Things change. Look at how it is now trading at 11:06 a.m.

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