CAT Puts

Deere did nothing last week and it moved up Monday morning. Here is how two series of Calls reacted in the first 45 minutes of trading. First the Calls that expire in four days, the $400.00 series of calls. Now the $402.50 Calls. Gains of 47% and 50% respectedly. What about Tesla? The reverse happened. Here is its five day chart and it dropped $8.36 on the opening before rebounding slightly. . Here is what the Tesla 250 Puts that expire this Friday did. They closed last Friday at $8.80 and went as high as $14.90 on the opening, a gain of 69%. What is my point? Well both stocks dropped over ten dollars a share last week and both stocks did a rebalancing act this morning. Let me add more context. Its 10:45 a.m. and here is Boeing's five day chart. I have talked about how Boing sometimes jumps on Monday mornings. Boeing is up just over $1.00 in the first 45 minutes of trading and is hovering at a price pretty much in line with where it was trading at last week. For this reason

Please read this Roku "earnings report" blog. Roku was down fifteen dollars in the first hour of trading today after the release of it's third quarter earnings report. Here is a 10:52 a.m. look at one series of Puts that doubled in price on the opening as a result of this sell off. In my last blog on Caterpillar I talked about points of inflection where stocks rebound after bad news. This time an inflection point may not be in the cards. Caterpillars earning were just shy of expections but nothing had really changed. The world still needs their products and they are still a dominant player in their industry. Roku is a different animal. Their subscribers are a fickle bunch. Companies like Roku and Netflix go up and down all the time. Roku now is just back to a level at which it was trading at earlier this year. I don't know how to interpret their financial statements. Things still look pretty good for them to me. Once again here is a look at the increase in the value

Third quarter profits were released. Now a look at a statement made after the release of their second quarter earning report three months ago. So if you were anticipating a price swing on the release of their earning's report could this be a profitable adventure? Suprisingly, yes and no. It depends on how you reacts to the stocks quick and precipitous decline. It also takes a bit of luck. Look at how the "near-to-the-money" Call options and Put options traded just after the release of this news. First the Calls. They lost 82% of the value at this particular time. The open interest number is just over 800 which is actually a small number when you consider Tesla options often trade 100,000 option contracts in multiple series everyday. Notice how these Calls, the 390 series actually traded down to $.14 or only fourteen dollars a contract before rebounding back up again to $1.42 in a short period of time. That was a nice rebound. Yet then again who would have the confide

You don't see this very often. I follow Deere options. First it's five day chart. Now a look at the 410 Puts which expire at the end of the week. There is nothing strange about this. A few traders got in to play the downside. Now the 410 Calls and what do you see? 819 contracts traded in the first ninety minutes of trading on this series of Calls that expire at the end of the week. A number of contracts this large tells us something. Or does it? Let's investigate further. Let's look at the volume of trading in the Deere Calls one striking price higher. Why aren't more traders jumping into these ones if someone likes the 410 series so much? In the same sort of way why aren't traders jumping into next weeks Call options given the apparent spike in these Calls? Now a check with "Yahoo" at noon to make sure these reported numbers are correct. Yes,the volume of Call options traded is now 855 contracts. More typical numbers would be 10 or 20. Somethi