CAT Puts

These are both what I would call "Big Boy"stocks which are somewhat volatile. Their price movements are often dictated by economic reports. Today is a Wednesday which is mid week in the weekly trading session. Options purchased this morning that expire this Friday will give you one full day of trading today and two more full days of trading. Both of these two stocks are up about $10.00 per shsre in the last two days. Both stocks can move either way. My focus is on the Puts which are both somewhat expensive. They have to be because these stocks are so volatile.Catch the right direction and you will do quite well. Retail stocks like this have a wide following and the price of both of these stocks can be affected by a number of differing ecomomic reports. For this reason the timing of swings can be somewhat of a guessing game. Now this. New home sales in the U.S.A. where down 6.2% in March and down 11.3% in April. It's May numbers are not released until June 24th. Now Home ...

One month until expiring options can be your very best friend. This time however we are looking at options on a stock in the five dollar range which are less predictable in nature compared to stocks in higher price ranges. The pace in trading them can be slower. Case in point is Hertz. View the following information. First it's trading chart today followed by it's five day chart. ... They are July 17th options and you can see how they had a slight pop on the opening. One of the things I like about this situation is how it's peirs in the industry are trading on the day. Now this readout. Notice the high of $.77 earlier in the morning. Let's move on to Tuesday morning. All three of the stock's piers are up. Whether it's drone stocks or drug stocks or auto retailing stocks it helps when the sector your'e trying to play is in agreeance with you're line of thinkings. Once again it is. Now this. Chat GTP would advise you from staying away from positions li...

I did the math. The average one day drop on Friday on these five drone stocks was 13.93%. The D.J.I.A index on that same day was down almost 600 points. I don't play options on any of the stocks in this sector of the market. $Unusual Machines the most expensive of the six dropped down the most at 18.36% It now trades at $26.37. It has weekly options on it. Here are it's thirty and five day charts. What a nice run upwards it had last month. ... Now this. A look at how one series of it's Call options closed out the day. I see something I don't like. It's the small open interest numbers. That to me means poor liquidity whenever it comes time to execute a trade. That plus after such a big recent run upwards you would expect to see higher volumes of option trades. I have often talked about how I like trading $Walmart options because the bids and asks are so tight with instant fills. What about the other mentioned drone stocks on this list? Are they more playable? Let...

So Tesla moves up in the first few minutes of trading on a Friday and quickly decides to go south. The DJIA closed down on the day 685 points. Here is how one series of Puts, the 425 series of traded on the day. A low of $4.11, the price the 425 Puts just after the opening and a closing price of $33.90. More surprising were the "out-of-the-money 410 Puts. A low of $.33 and a high of $21.28. The most extreme gain was with the 392.50 Puts which has a low of $.03 or three dollars a contract and a high of $4.12 or four hundred and twelve dollares. Do the math of that one. How many times has this website talked trading "one-day-until-expiring-options" on Tesla options. The answer is many times. There was news this week about Musk raising 75 billion dollars for "Space X" and in doing so is selling out only 4-5% of this new company. Musk is the richest man in the world. Powerful people can make powerful moves. So what's my point? My point is that the option mark...

The DJIA is up something like 850 points on the day. Eli Lilly has jumped $50.00 on the day. Happy days are here again. If the markets cool on the opening tomorrow (Friday) could the stock give up some of these gains? If so what would these Puts do? Might the stock give up 25% of what it gained today? Now it's five day and one day chart. $850.00 for a Put on a stock that has jumped up over $50.00 in one day. It's a Put that expires tomorrow. Is this a recipe for failure? At 2:42.00 p.m. the DJIA is up 899 points. Now the action at 2:47:00 p.m. Now this. In at 2:31 p.m. if you like at $850.00 and out 38 minutes later at $1,100.00. That's a gain of $250.00 and all you did was skim a small gain off a hot market. Maybe that could be your trade of the day to avoid all of aggrevations of what might happen next. It would be catching the tail end of a 950 point one day rally. That in itself is not a bad strategy. Now a 3:30 p.m. update. Another small gain. Let's see what ...