CAT Puts

Here is Thursday's trading on the day on Caterpillar. Here is how the $417.50 calls that expire tomorrow closed the day. Something happened this week. Caterpillar had a quarterly earning report come out on Tuesday. It's stock trading action survived this news unscathed. Here is it's five day chart as of the end of Thursday. Maybe the 420.00 or the 422.50 series Calls are better to look at? Here they are. But wait. Deere got clobbered today on the release of a quarterly earning's report. Why didn't Caterpillar sell off in price in sympathy? It shoud have. Deere sold off $34.70. For this reason alone I would be more inclined to purchase the Puts. Here is the series I would consider. To be continued. Now Caterpillar in the pre markets on Friday morning. One option would be to sell in the premarkets and walk away. The second option would be to see how it trades on the day. Here is the answer. Caterpillar was down $9.71 on the day! It's the kinship with Cater...

This is one of a series of blogs about short option playing. Past blogs have shown us that Boeing sometimes jumps if it has jumped only a few days before. Here is it's five day chart as of 3:30 p.m. on Thursday followed by it's one day chart. .............. Now let us look at three series of Call options that expire tomorrow. Now the higher "out-of-the-money" $237.50 series of Calls at 3:50 p.m. Based on it's five day chart pattern it could jump on the opening. What's going to happen next? With Boeing it is sometimes know to drop on the opening on Fridays and then kick back upwards. Here is what happened. It did sell off on the opening and it did then charge back up. Here is what happened to the 232.50 series of Calls. They hit a high of $420.00. around lunchtime after dropping to under $1.00 around 10:00 a.m. I mentioned that they could drop on the opening and rebound. Boeing is a scary stock to play last day options on.

Let's quickly get up to speed. Here is a chart on Deere at 1:08 p.m on a Thursday and a look at the $480.00 series of Calls which expire tomorrow. Note the stock at this point in time is down $35.12 on the day on a bad earnings report. Now this, a look at one series of Calls. The 480 series of Call options. They look cheap. In a recent blog (well just last week) the stock Eli Lilly was in the exact same boat. Here is it's 30 day and 5 day charts showing a rebound after a steep decline. ..................................... We are talking about Eli Lilly crashing in one day and then moving up after that like $50.00 in just five trading sessions. Isn't it true that stocks after a major fall like this tend to take a couple of days to rebound back up again if that's the direction they decide to go? Based on this occurance isn't it possible that Deere could sell off some more before the end of today's trading day? Here is a look at the 480 series of Puts that expi...