CAT Puts

Look at this chart. Strikes and doors not working properly but it's amazing their planes fly millions of passengers around safely ever year. Now a look at it's one week chart. Good luck trying to play the Calls on it last week as it dropped $11.49 on the week. It wasn't really a Trump related happening. It was just a bad week. I have mentioned in previous blogs how some people buy Calls on Boeing on or near the closing on Friday to then sell on Monday morning openings. Now this. Boeings one day trading chart on a Monday November 18th. Now the trading in the 140 series of Calls. Boeing is up again the following morning (a Tuesday) with the DJIA down over 300 points. Remember the stock lost $11.49 last week. Do you think it will now continue to go up? To be continued.

Look at this. Pfizer. It's five day chart. What is happening? Look also at Eli Lilly's five day chart. Now look below at how Eli Lilly sold off again, this time on Monday morning. The news of what was happening was further decimated over the weekend. Can you jump in now and play it for the upside? Perhaps but who would want to? Call options on it are so expensive now that this time it would have to rally way more than half of what it just lost so far today just break even by the end of the week. Who would want to take this risk? Now a question. Why is the open interest posted above at zero now? Well traders last Friday looking for a rebound where busy purchasing the 745 series of Calls instead. Not this series. Now here is how the 715 series of Calls closed out the day. They ralled over $4.00 a contract since we first looked at them. Here is now what it's five day chart looks like at the close on Monday. Now consider Pfizer. Might it rebound a touch at this point in t

A bully makes the rules and that's the problem. The "markets" can now turn on a dime whenever Trump, the bully now decides to make an utterance. A fat man playing golf at "Mar-a-Lago" surrounded by FBI agents in the bushes. He now has carved out his ninch as a "one-man-show". His cronies are lined up to get rich. We are all stuck. The markets will now start to go up and down on every utterance he makes. As a trader let me give you one example of his powers. One day on a Friday afternoon around 2:30 p.m. when Trump was in power the first time as the president he made a comment that spooked the markets. The markets dropped like 600 points in a matter of minutes. I was checking my cell phone and I watched this event unfold. I was sitting on a handful of Puts in about four different stocks and I only had like 30 minutes to get out. Up until that moment in time I was getting smoked on all my positions. Suddenly I was rich as all of these holdings jumped up

Thirty five minutes into the trading action and here is what is happening. Trump is big on tariffs and is vocal on Deere products made in Mexico.The 410 series of Puts on it are up 367%. The 405 puts are up 920%. They closed the previous day at .51 cents. Volumes of trading are light. Traders are not taught to trade in one day options and for all the hype about Ai trading no inroads have being made in this regard which is something I find strange. What value has Trump added to these two stocks this week? None really. So why such extreme forward looking thinkings? It's 10:28 a.m. so we are still in the first hour of trading. These options expire at 3:30 p.m. so there is still four hours of trading life in them and the Djia is up 239 points. Is it now time to catch a rebound? Maybe. Well maybe only to those traders who caught the selloff and profited this morning. Yet then again one would be fighting thinnly traded Calls and Puts both on the buy side and on the sell side. In oth

Today. It's going to have to prove it's worth that much more. Then Tesla. It came to the party. Things were not so kind to First Solar. Then weed stocks all got kicked in the pants. Drug companies chilled. Finally charging station companies were pinched. It's amazing how quickly the markets adapted a new mindset. Between now and Christmas trading on options is going to become the wild west. Look at how these two series of Calls traded today on Caterpillar. The first series are the $400 Calls. These Calls closed the previous day at $1.09 and closed out today at $17.43. It gets even crazier. These Caterpillar Calls with a $415.00 striking price closed out the previous day at sixteen dollars a contract and today closed out at six hundred and five dollars a contract. That's a gain of 3,681%!!! What a show! Talk about excess exuberance.