CAT Puts

First the five day chart. For this chart to have more impact let's look at it back to the day it really jumped. Is this good news substainable? Here now is it's 1:07 pm Tuesday look at the action. It's moving up again. Here is what the D.J.I.A. is doing. Now this the Puts at 1:06 p.m. These are the 70 series of Puts which expire this Friday. Today is Tuesday. The volume in them is next to nothing. G.M. is going up. It seems kind of stupid to be thinking about them going down. Yet a lot can happen in three days. Here is how they closed the day. Here are other "out-of-the-money" Puts. Let's watch and see what happens. Let's start with the 68 series on Wednesday at the close. They held their ground as G.M. was off a touch. What about the 67 series? Not much different but the time value is becoming more of a concern. Yet a two dollar drop would do wonders. Now the 66 series of Puts. A stong upwards opening on the stock tomorrow will wipe these ones o...

It has earnings coming out tomorrow and the Calls and Puts going into Tuesday morning are crazy expensive. You can't really play them but I just want to show you the action. First the option premiums on this Friday's Calls and Puts. ....... There are more Puts outstanding than there are Calls. That is not something you see very often. Here is it's year to date chart. The stock could go both ways. Now a look at how the options and stock traded on the day. Remember I started the day by saying these options are to expensive to trade? Well they are, but the stock does crazy things all the time. The $355.00 series of Calls was up $9.00 at one point in the day from where they closed at on the previous days close. Tesla is like that also. I don't like to play interday price swings on Tuesdays. There are other days of the week I find it easlier to play. There exceptions, as this time the stock has earning reports coming out. Having said that, these Calls are to rich for ...

Caterpillar builds things the world needs. Rivals are few and far between. Here is how Caterpillar traded last week. It was down $4.35. The stock has had a good run in the last while. Option traders seem to stay away from playing options on Caterpillar. This stock began a major move upwards back in September. Now we are in a situation where Caterpillar's quarterly earnings report will be coming out this Thursday morning before the markets open. Typically when this happens the stock moves up or down like $10.00 to $20.00 in the first few opening minutes of trading. This time should be no different. Analyst have already weighted in their opinions of what the earning numbers will look like. Here is how two series of options (one series of Calls and one series of Puts) closed on Friday Oct 24th. These two series of options still have one week of trading life left in them. ...... Both the Calls and Puts are super expensive. Bad news could rock the stock for like $15.00-$35.00 per sha...

We take risks everyday.This morning for example I poured myself a cup of coffee which I held in one hand and I also picked up one of my laptops sitting on a couch by grabbing it by one of it's corners. Then I put down my coffee cup and picked up my cellphone and placed it on my laptop. I then managed to pick up my laptop once again and held it face up so the phone would be less likely to slip off it. With my other empty hand I picked up the same coffee cup and then carefully carried all three of these items from my livingroom to my bedroom. It saved me making two trips. In hindsight that was a stupid move to make. In this decision making process my brain was telling me that I have two laptops and that the second one is more valuable so if I dropped the first one and broke it then that wouldn't be the end of the world. It's funny why it would think like that. My brain was almost tempting me to take that risk. Also, if my cell phone slipped off my laptop and hit the floor wh...