CAT Puts

Here are how things are set up for the opening. Now it's one and five day charts. .. So the stock is down like $75.00 from it's peak opening two days ago. It's Wednesday and these option now have three days of life left in them. $14.97 is the price this one series of Calls closed at. This kind of a chart formation looks kind of ugly. A flat opening. There is not much happening in the first twenty minutes of trading yet the D.J.I.A is up.. It's a Wednesday and for one week option traders these are often turn around days. It didn't happen. Eli Lilly danced around and then sold off on the close on Wednesday. Here is the pricing of the 1,025 Calls going into Thursday morning. They cost $9.00 and are $10.00 "out-of-the-money" with only two trading days to go. Does reading all this curb your appetite for wanting to play situations like this? If nothing else, it gives you an appreciation for how dangerous this game can be. Let's see what happens next....

Can you fight it? ... Why would you want to? It's not like the Stellantis opportunity we had on Monday morning. Is the stock running out of momentum? Up over $22.00 and then up over $28.00 and then up over $30.00. Now this less than an hour later. Caterpillar takes a hit. When Caterpillar goes up over $30.00 in fourteen minutes and you catch it (with Puts) on the downside just take your profits and run. I will show you below how it closed the day. Now a trading comment. It's difficult to fight rising stocks and in hindsight the answer to Caterpillar's meteoric rise would be in holding it's thirty days Calls purchased in the recent past. Today's situation was a mid week option trade, the one day of the week I have often referred to as being the day of reversals. Caterpillar jumped on no news and Deere just sputtered along. It's largely insituational trading and various analyist are bullish on the stock. If this kind of a jump happened on a Thursday or Fr...

I don't like writing blogs about Eli Lilly. Why? Three reasons. It's option premiums are expensive and the stock makes giant moves. The third reason is that I know next to nothing about Eli Lilly's "day-to-day" operating realities. If I guess wrong, yes I say the word guess and I am not apologizing for using it, it's game over. Look at what happened this morning, a Tuesday. It jumped upwards after the opening and then sold off. ... The Puts traded down to $12.64 on the stock's early morning blip upwards and then nearly doubled in price on the ensuing decline. A second chart here below shows that action better. Buy the Puts just after the opening and sell them a few minutes later or wait and sell them at lunchtime. It's not only Eli Lilly that moves like this. Look at Costco today. It also was up on the opening and then tanked. This series of Puts moved up in price. Finally Carvana. The same story. Up on the opening and then tanking. .. If you ar...

Last week was a bust. Here is it's chart. Now there are a couple of options to consider. The most logical ones to consider are the $7.00 series of Calls or the $7.50 series of Calls. In the case of picking one or another I like the $7.00 series of Calls better. To simple a judgement call you you might say? Well the stock just lost 30% of it's value and many traders leading up to this sell off were afraid to play the stock knowing it's product lines are in general to expensive and knowing that there are no quick fixes. But wait, might the stock continue to slide on Monday morning? Probably not as the stock just had a pretty big haircut and all of the auto stocks now seem to be having issues. Why beat up Stellantis even more?. The other part is that this might now be an attractive buy in situation. Why not get in on this action at this attractive new pricing. Get in on the Friday near the close hoping to profit from a Monday bounce. Selloffs this large are rare. What would ...

Here is it's chart. Look at the extreme one day price movements. Here are what the indexes are doing at 11:10 a.m.. Now the Eli Lilly Calls twelve dollars "out-of-the-money" with one day to go. Now this, an end of day report. Now it's five day chart including today's action. To be continued. There is still reason to be optimistic. Now this in Friday's premarket. Friday was a suprise. The 140 Calls turned into a suprise. Very few traders had the guts to play them. This happened. Eli Lilly often suprises. Jumping in on Wednesday on the downside or jumping in on Friday morning was the way to play it. *** Can you play options on Eli Lilly up and down? They are expensive however as of late they have had huge price swings. Looking for opening market reversals is one way to play them.