CAT Puts

Here it is. What's going on? Something must have happened to drop the stock down. How did the "12 series of Calls" and the "11.5 series of Calls" trade on the day? What about the "12 series" of Puts? So what happened? So how did Ford finish out the week? The most obvious trade of this week was to buy Ford Calls on the dip after the release of good news. How hard was that? Yes with patience youu can learn to teach youself how to play short term options.

It's only down a touch. Here is what one series of it's Calls are doing. Now this. All that in just under ten minutes. * Was that a wise decision? Look at this. Yes it was. Now there is a new question. What's going to happen next? Here above is it's chart mid afternoon. It's best just to stay away because of the high degree of risk. Now look at how it's trading later on in the afternoon at 3:05 p.m.. Look at these mid afternoon Puts. Lets pause for a second and think this out. Getting in around 2:00 p.m. and getting out at the 3:00 p.m. deadline was another option open to traders late in the trading session. Last hour trading patterns share similarites with early morning trading.

It was stronger than expected. In a blog I did last week on April 24th here is how the 830 series of Calls were trading that day. The open interest and volume of trading in the Calls at that time was next to nothing. Here is how they traded today on their earnings report news. They more than tripled in price in one day. Only 29 contracts traded on the day! Traders were afraid to shell out the large amount of cash $2,771.00 to be exact, to be in the game. That's just to much money. The return was $7,235.00. That is more than a double. Was I wrong for not recommending them as a purchase? I was saying that Caterpillar was trading at lofty levels and I followed the Puts instead which ended up going sideways for a few days. There is always a bit of nervousness just before earning releases. The game with Caterpillar will continue. Now this. It now looks like it's going to go to $900.00 or even $1,000.00 per share.