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"Boeing Calls" On A Friday Morning.

I wrote the very same type of blog about Boeing's trading pattern last Friday. In that blog Boeing went flat in price for the entire afternoon. Any profits to be made in the Puts happened in a very limited period of the morning's trading action. Might things today happen in the same way? The price of oil is suddenly up. That's not good for Boeing. Let's begin with Boeing's five day chart. Now it's one day chart on Thursday. Look at how the stock wandered back up towards the very end of yesterday. Could it inch up another touch on the opening and then run out of steam? Would this be a good time to be focusing on the 210 Puts? Experience has taught me not to be jumping into Calls options on Thursday afternoons to catch Friday morning rally. That's more something one might do at the end of the day (on Fridays) to catch a Monday morning bounce. Here is a look at what two series of it's Puts are doing and it's chart about eight minutes into Friday morn...
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The Appetite For Caterpillar Options Going Into An Earning's Report Is Quite Small .

Let's start with this. Caterpillar has an earnings report coming out on April 30th. You should listen to it. It's not going to be difficult to find.
Now look at these how these two series of options closed out the week. The Calls are just "in-the-money" and the Puts are just slightly "out-of-the-money".The cost to play the upside with one week options almost equals what it costs to play the downside. That's kind of strange as usually the Calls cost more to purchase than the Puts. Both are super expensive however Caterpillar as of late can jump $15.00 or $20.00 dollars in one day. When I say super expensive what do I mean? 2,690 means $2,690 Americian per contract. That is not chump change. You would have to have a very strong conviction it was going to move one way or another before you would want to jump in. Yet there is bigger problem. The current price of the stock is in a nose bleeding territory. Look at it's one year chart. Is it really doing that great? Aren't raw material costs are skyrocketing?
There are naysayers. Yet before we talk about what they are saying I should mention that there are also numerous other stocks in these nose bleeding territories. Have you watched the bank stocks lately? Now look at these numbers. With numbers like this why has the stock doubled in price? Could things start to go wrong? Are profit margins starting to get squeezed?
Now a reflection on what happened in the first quarter. Here are some remarks posted by Caterpillar back on Januarry 29th about their previous quarters operating results.
What do I make of all this? I think just stay away. Caterpillar Calls in the recent past have paid off nicely. The now current reality is that if Caterpillar starts to go sideways this week the lofty premiums built into these two series of Call options could dry up to half their current value. Why do you need to take on such risk? You don't. Let's follow this situation and see what happens. It's to dangerous for me. ** Here is how Caterpillar traded on the week.
Can you see the $40.00 two day price increase in the middle of the week? It is this kind of action that makes these options so expensive. * A Monday morning update.
Now Tuesday April 28th.
Both the Calls and Puts are commanding high premiums and retail traders are not participating in this action. Here now is Caterpillars ninety day chart. There appears to be some profit taking happening.
Let's look at the 800 series of Puts. With only three days of trading life left in them this would be a very dangerous trade to be entering into. That plus Tuesdays going into Wednesdays are not my favorite time to be looking at three day left to expiring options.
Read my Jan 13th 2026 blog "Caterpillar Calls" Rock. I talks about Caterpillar which dip for only very short periods of time. Now Wednesday at the close.
Now at look at the 800 Puts. They closed at $16.40 on the previous day. With only two days of trading life in them I would just get out. The stock dropped on the day $7.40 on the Puts barely moved! The time value in these Puts vanished.
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Location: 4QX2FV5H+28

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