CAT Puts

Here is it's chart on the day as of 3:37 p.m. There is recent talk of Trumph helping the farmers with bailouts.. It's a Thursday with options on this stock expiring tomorrow. I want to show you how some of the "out-of-the-money" Call options have traded today. First here is how the markets are doing in the late afternoon. Now look at these three series of Call options. They are all "out-of-the-money" Call options. What are the odds of ever catching this action? It would of have required the mentality to be willing to buy them on this morning's dip. That plus the stomach to purchase Call options which are "out-of-the-money" with only one day to go. It's not everyone's cup of tea. I get that. So once again, Caterpillar has had a healthy upsurge on the day. Would it make any sense to be looking at tomorrow's Puts? Well check out this one series of "at-the-money" Puts. They actually look very reasonable in price. So the q...

This could be an exciting opportunity. ...... Now its one day chart. Ay 2:49 p.m.with the DJIA average up strongly the stock is still struggling. This could be another one of those cases where it is a good time to get out (see our Exxon blog today) for the same advise. Wednesdays can be turn around days for "one-week" or in this case "three-day" options but if things are slow in happening it's just best to bail and never look back. It's called day trading. Once again, this take your profit decision applies to last "week-Wednesday-short-term-option" playing. Wednesday going into Thursday are a tricky space to be in with overnight options. This "take your profit approach" doesn't necessary apply to other days. ** Here is how Boeing traded the next day. It wasn't a walk in the park for these options.

When a stock steps up like this it sometimes loses momentum. Let's see what happens. It's Wednesday. Here we are 27 minutes later. Maybe it's time to get out and rethink things. The morning jitters might get shaken off and it's sideways pattern may continue. Now at look at how the stock is trading at 12:28 p.m. It's not much of a day to be fighting the downside. Exxon is a stock where you can play it's interday swings. It's now 1:05 p.m. and there no urgency to keep watching this situation. It could go either way. It's time like this where it's a flip of the coin. To be continued. Here is how the 119 Series of puts closed the day. When you are dealing with short term options priced under $1.00 the smallest of moves in the wrong direction will wipe you out. Under $1.00 options in sideways moving markets is not where you want to be. *** Now a look at Thursdays action. It's not very often you see it trade sideways like this. Shown is it's ...

Here is this mornings chart. There is a bit of a technical glitch in the Calls and the Puts with no open interest numbers and impossible bid and ask numbers. When you look out further to January options you will see that the situation remains the same. When you see a chart like this it's best just to stay away. I will do an update later when the interest in these options get sorted out. The company continues to lose money. Polestar later in the day. Stay clear of reverse stock splits. Polestar continued to drop on the following day.

I have writen a few checky blogs recently about some relatively obsure company called Big Bear Ai. It does however sometimes make the list of the top most actively traded stock by share volume on the NYSE index. That's how I initially discovered it in the first place. It's a hot stock now but it six months time it may be long forgotten. Here is it's year to date chart. To today is a Monday and here is what it's chart looked like at one point last week when I said it could be a good time to catch the upside. As you can see in one of my last blogs the options on it more than doubled in price on the following day. This time the chart shows the same end of week bounce and a slight sell off this Monday morning. Could this be a good entry point? Monday morning sell-offs may linger, longer than one would think. Now this two hours later. Little has changed. They closed the day at $.31. Playing options on six dollar stocks is not always a walk in the park. Now it's Tues...