CAT Puts

I.B.M. had a bad week. Here is how bad it was. Sometimes you see charts like this. It was down $74.89 on the week. What happened? The headlines said "I.B.M. just sent a warning to dividend investors". Something about it missing earnings forecasts because of an artificial-intelligence-related shift in it's customers spending. That is a new one that we don't hear very often. Which way is this stock going to now move? It's probably dumb to be chasing this when the outcome will most likely be all so random. Just walk away and let I.B.M. figure out it's own problems. It may take time. Here is what the Calls nearest to what the stock is trading at are doing going into Monday morning's action. These are options that expire this Friday. Don't gasp and say that the premiums exorbitant? There are still expectations that the stock could rebound after such a big price decline. Buying into a Call option position at this time after a big drop in price places you i...

I realize that this type of a blog has a limited appeal. Many readers would dismiss this blog as being crazy. I get that. A blog in part about watching option pricings on one particular series of Puts, the 215 series of Puts on Boeing move on a minute-to-minute basis on a Friday just before they expire. Here we are looking at Boeing Puts at 9:56 a.m. The stock has just gone up and the series of Puts shown above have gotten crushed. Now a look at it's five day chart. This is where it will get interesting. Notice the stock has already had a rebound off a sharp morning dip. Traders who used the 212.50 series of Calls on Boeing's soft opening were already well rewarded. Only 121 contracts have traded during this period of time. Here is what the indexes are doing. So that's it. You could wager $100.00 U.S. plus commisions for one Put contract (the 215 seriess of Puts that expire in the afternoon), or multiples thereof and walk away for the next three or four hours or so in t...

Look at this big bump in the road. A spike down to $2.45. at 1:44:59.p.m. on a Tuesday followed by a full rebound. It's never good news when things like thus happen. There were rumors of it going into bankruptcy which the company quickly denied. Was someone purposely spreading this rumor for self serving reasons? From my point of view the uncertainty caused by this occurance adds an extra layer compexity to the long journey that this company endured. Will institutional traders worried about liquidity issues and the preservation of capital change their attitudes on this stock? Traders, for reasons I don't understand seemed to quickly brush this incident off. The company has recently raised more money and has cash on hand. Production numbers in 2025 were somewhere around 16,000 units and are now estimated to be around 21,000 units in 2026? This nervous dip muddies up the waters around this company. In the bigger picture this stock offers investors an opportunity to bet on a rebo...

Four years I was writing blogs about "Nio" when it was trading at $22.00 per share and building less cars than it does now. Now I ask this? Are these $5.00 Call options on Nio which expire in three days a trap? $5.00 options with three days to go are not for the faint of heart. Other option traders seem to be following this action. I like this chart and three days in option trading is a long time. .. Let's see what happens on the opening. Now Wednesday at 10:17 a.m. Take your money and run. This was a case of banking on a continuation of morning rallies. The charts kind of told us that might happen. Here is how this chart jumped again on the opening. I would think this game has come to an end.

Very few option traders trade short term options on Disney. The first two printouts below help to illustrate this point. Look at how low the open interest was last Friday on one series of it's Calls and one series of it's Puts. .. Most traders of these options are focused on making interday trades. The low open interest on both of theses series of options tell us that. Now look at how Disney traded on Friday, the last day of the week. Many of the trades made are AI induced. Reversals happened in the morning for example at exactly at 9:31:00 a.m., 9:33:00 a.m., 9:37:00 a.m., 9:41:00 a.m. and other times all to the second of the minute.That's a big the hint it's Ai trading. Now it's one month chart. Disney is down. Now a five day chart. Here is where it gets interesting. What it shows us is that some one week Put options would have doubled in price on a Monday and some Calls would have doubled in price on a Tuesday and the Puts would have doubled in price on a Wed...

What do you think about this chart? It's one of those falling of a cliff charts. It's a Thursday morning and it looks like this stock is kind of in a downdraft. Look at my most recent blog on Rivian. The bad news on Lucid could be a hangover effect caused by Rivan's one day prior bad news story. It was talk about Rivian going back to the markets to raise more money even though they were starting to lose less of it. It was a good-news, bad- news story. A story which would take a few days for the markets to digest. Let's now look at two series of Lucid's Calls which expire tomorrow. We now find ourselves forty one minutes into the market's opening trading action. The 26 series of "out-of-the-money" Calls that expire tomorrow are trading last at $.03 cents. ... Now this. Now look a this small rebound twenty five minutes later. .. Here is where it gets a touch confusing. The $5.50 Calls which were once at $.22 cents are now $.30 and the $6.00 series of...