CAT Puts

What if? One year out options can be amazing trading vehicles. Look at this one year chart. If you watch YouTube videos like "Car Edge" you will see statistics showing that Stellantis dealerships are sitting on two door Jeep Wranglers vehicles for about 230 days before they sell. Other product lines like the Crysler Pacifica can sit for like 264 days or the Dodge Charger, the slowest-selling new vehicle in North America at 385 days. Yet that's only part of there business. In Europe for example it sold 1.37 million vehicles in the first half of 2026, up 3.8% from H1 2025. That said Chinese brands' European sales more than doubled their market share to 8.9% in H1 2026. Stellantis also now owns about 21% of Leapfrog and is now selling these Chinese electric vehicles in South America through it's dealer network. My point is that anything can happen with Stellantis over the next year. It has a Forward P/E ratio of about 5.5X. Now this news on the day. Management at ti...

This is kind of dirty pool. So the stock and options jumped on this news. Did Trumph's cronies get in on this action? It's difficult to tell as they could have got in a few days or a week ago and they could have bought Call options with longer term expiracy dates. Or his stockbroker cronies could have bought the stock to also profit in this gain. Certainly the authors formulating these policy changes were part of this action. In all fairness I can't prove that insiders profited from this Friday event. Yet here is the thing. Releasing this kind of news on a Monday or Tuesday would mitigate this kind of an event from being as impactful as it potentially could be. Option premiums shrink in value the closer you get to their expiracy dates. Lawmakers know this. They should know better than to allow this to happen. No government policy changes that will directly effect the stock market should be allowed on the trading days of the week when the majority of short term Call and P...

Disney is starting to move smartly. It's five day and 30 day chart shows us that. Look at the swing in price today on it's $104.00 series of Calls. Very few traders are playing them. Now let's look at the 105 series of Calls that expire tomorrow.They closed near their high of the day. Volume in them is light. Now Friday morning. Both the 104 Calls and the 105 Calls jumped in the first three minutes of trading. Let's now move on in time. Now this at the end of the day. Disney kept going up. ... On Thursday the 104 Calls traded as low as $.36 and closed at $1.00, then to go on and reach $2.60 on Friday. I don't know why so few trader's didn't see this happening..

When a stock jumps bigtime on the opening can you play it on the downside? Now two series of its Puts that expire in two days. Now this. The Puts are starting to go up. What do you do next? Cash out with a slight gain? Here is it's five day chart. Can you see how trading short term options have periods of time leave you riveted to your seat. Now another update. .. Might this be a good time to get out and take your money back? Probably. The longer a stock like this goes sideways the less value the Puts will have. To be continued. Getting out was the thing to do. Here is how Super Micro closed on the day. Don't get married to short term options.

It looks ugly. .. So here is the thing. Call option players at this point in time are offered the opportunity to buy in for the leverage. One doesn't need a full recovery to $14.00 or more to make money. Any hint of a slight rebound witll move up the price of these options exponentially. It's Wednesday morning and these Calls don't expire until Friday. Let's see what happens. A late in the afternoon trading update. Now we are waiting for a strong opening on the upside. Look at the volume picking up in this series of Calls. Looking at that indicator can fool you.Thursday morning. No strong opening. Now at 10:00 a.m. Thursday morning. To be continued. Here is how Ford closed on Thursday. Things are not looking good. But wait. Friday afternoon. These options have suprised! There was some random news. This pop was somewhat unexpected but just think of how the Call holders who bought in on the close yesterday made out. I have done many blogs on Ford Calls. It can rea...

One day option trading. Look at "Nio's" one day chart. What a waste of time it is you might say to look at junky options on junky $5.00 stocks. I know, "Nio" has kind of a checkered past. Monthly sales numbers however have just increased significantly. If that's the case why did the stock dip on the opening? That's a missing link in this puzzle and something we have to discount based on the opportunity that this quick price drop created. ... A thirty cent price drop happened on this stock on the opening and this week's Call options took a major hit. Obviously catching this morning's sell off using Call options as a trading vehicle was the way to go. Where these Call options are going to go from here is something I will track. Last week I talked about another stock in a rebounding mode called Hertz. When I pull up it's trading pattern today we can see the same thing happening again. $.19 cent Call options now trading at $.60 in one day. I do...