CAT Puts

Exxon just broke it's previous three month high. Now it's five day chart. The 117 Calls have doubled or tripled in the last two days. Now it's chart as of 10:42 a.m. this morning. Today is Wednesday. The markets are closing today at 1:00 pm., then closed tomorrow for Christmas and then open again for a full trading day on Friday. Now this. A look first the Calls which are $.30 cents "out-of-the-money" and expire on Friday. Now the Puts which are already like $.30 "in-the-money". Expectations are that the stock is going to go up and that there is still a full day of trading on Friday. Here is what the markets and what the price of oil are doing. Can you see how traders have a preference for the Call options and are hoping Exxon continues it's natural progression upwards. They are prepared to pay somewhat of a premium to be positioned in this situation. I don't know what the outcome is going to be. Nobody does. As a reader can you see the co...

It's five day chart as of a Tuesday evening. It closed the previous day at $116.69 and spiked on the opening. That was it's best opening in days. A near double in price for sure on short term Call options. The same kind of morning spike happened two days earlier. The first twenty minutes of trading every morning is often when most of it's action happens. One thing traders know is that Exxon moves independently from what the DJIA index is doing. Here is how the 116 Calls and the 117 Calls did on the day. Up 94% and 85% respectively. All I can say is learn to pick your battles and if pick correctly, expect to be rewarded. Exxon as a trading vehicle is not going to go away. * Now a look at the December 23th 116 and 117 Calls at 11:00 a.m. The stock keeps on marching up. At this point in time there is no reason to want to try and play it. ... Would a one day chart at this point in time tell us anything? Not really. An end of the day decision on whether to try and play it...

I am fishing looking at todays action. Thirty seconds ago the volumes of trading in this series was reported as 1,000. Now it's 1,004. One thousand contracts could have happened in one ticket. I was watchinng it just before it happened and the volumes of trading was zero. $5.00 options can suprise. Here is how they closed the day, up 540%. So why am I blogging aboiut this event? Well, in a recent past blog the same type of event happened. Check my November 8th blog. Look at the chart that I pulled up from that blog. When a stock jumps in one day from $5.00 to well over $6.50 and settles back again to $5.00 you know that history could repeat itself. Today was that day. One month from now we could be looking at this same event unfolding again.

It's all about timing. Is this a good buying opportunity? Chinese built electric vehicles, the news coming out in this space can be exhausting. Monthly auto production numbers are what traders look at. Nio's stock is not being rewarded for this years performance. If a car company on this side of the ocean had growth like this traders would be all over it. It's all a guessing game. Let me now tell you why I like this situation. .... These Calls are now priced at $.08 and the high this morning was $.13. An uptick back up to let's say $5.06 would bring these Calls back up to $.14. What a stupid exercise to be chasing you might be thinking. I kind of agree. Yet the point remains that a small updraft for whatever reason would make this a profitable trade. Can we find guidance in it's five day chart? What I do know is that I wouldn't want to be playing this series of options if it had only one day to go. As hours tick by you might be stuck in this waiting and hopi...