CAT Puts

Caterpillar rallied from $801.53 at 3:00 p.m. on Thursday to $815.39 at 3;59 p.m. Thats a big move in 60 minutes. Institutional buying was kicking in after a rough week of trading. Look at how they were once trading over $875.00. Might it still have some room to go up? Here is how one series of it's Call options closed on Thursday. What I find strange is that no one was trading them on that day, even as it was surging upwards in price in the last hour of trading. Will this enthusiasm carry over into Friday mornings trading action? Trading Caterpillar options as of late has become a bit difficult because the option premiums have become ridiculously expensive. They closed at $6.95 on Thursday. Let's see how they open on Friday morning. Now this. A double. Why didn't any technical traders buy into this one?

First here is Ford's Five Day Chart. Now a look at two series of it's Calls, one that expires this Friday (today is a Monday) and one series that expires the following Friday. .... Notice the open interest in this weeks Calls are a lot greater than the open interest in next weeks Calls. Short term option players usually don't think two weeks out. Now imagine purchasing ten of next weeks Call at $.40 each or $400.00 and selling against them ten of this weeks Calls for $.31 each or $310.00. Your net investment would be $90.00 plus the commissions on two trades. In a perfect world you would then like to see the near term Calls drop to zero and expire worthless and then have Ford next week out Call options shoot back up again in price on the following week. It doesn't have to play itself out like this to make money. Now an August 19th review which happens to be a Wednesday. These short term Calls have jumped from $.40 to $.52. Now a Thursday suprise. Ford falls big time ...

There was news and the stock is going to jump big time on the opening. Now look at the volume of trading in two of it's series of Calls yesterday. What impresses me is the zero trading activity. Insiders are not catching this action. Now look at it's premarket bid and ask. Now this eight minutes into the trading action. ... Look at the price increases. $.08 or eight dollars a contract to over sixty five dollars! Let that sink in. More comments about this to follow. Here is it's chart two days later. Playing the downside on yesterday's opening would have also produced great returns.

First it's one and thirty day charts. It's Tuesday and we are now going to look at the "in-the-money" 27.5 series of Puts that expire on Friday. A drop in the stock's price of $.50 would do wonders for these Puts. Company insiders are said to be buying shares in this company. The stock has being going sideways for a year. Now it's one day chart early at 9:56 a.m.. To jump this much in the first 30 minutes of trading is a rare occurance. Notice how low they traded down to (between 9:59 a.m. and 10:03 a.m.) in this spike upwards. Now this. A swing from $.32 to $.48. If your trading ten contracts at a time you could have caught some of this action and had the fun of doing this. * Here is how they closed the day. Yes you can pay the downside on unusual morning bounces but you have to be nibble in your trading and detached from this action after you sell out. Take any profit when you see them and just get out. Tuesdays after the close is my least favorite d...

What if? One year out options can be amazing trading vehicles. Look at this one year chart. If you watch YouTube videos like "Car Edge" you will see statistics showing that Stellantis dealerships are sitting on two door Jeep Wranglers vehicles for about 230 days before they sell. Other product lines like the Crysler Pacifica can sit for like 264 days or the Dodge Charger, the slowest-selling new vehicle in North America at 385 days. Yet that's only part of there business. In Europe for example it sold 1.37 million vehicles in the first half of 2026, up 3.8% from H1 2025. That said Chinese brands' European sales more than doubled their market share to 8.9% in H1 2026. Stellantis also now owns about 21% of Leapfrog and is now selling these Chinese electric vehicles in South America through it's dealer network. My point is that anything can happen with Stellantis over the next year. It has a Forward P/E ratio of about 5.5X. Now this news on the day. Management at ti...

This is kind of dirty pool. So the stock and options jumped on this news. Did Trumph's cronies get in on this action? It's difficult to tell as they could have got in a few days or a week ago and they could have bought Call options with longer term expiracy dates. Or his stockbroker cronies could have bought the stock to also profit in this gain. Certainly the authors formulating these policy changes were part of this action. In all fairness I can't prove that insiders profited from this Friday event. Yet here is the thing. Releasing this kind of news on a Monday or Tuesday would mitigate this kind of an event from being as impactful as it potentially could be. Option premiums shrink in value the closer you get to their expiracy dates. Lawmakers know this. They should know better than to allow this to happen. No government policy changes that will directly effect the stock market should be allowed on the trading days of the week when the majority of short term Call and P...