CAT Puts

I blogged about this one the day before. Here is todays action at 11:a.m.. The stock took a massive hit. Is the short squeeze unwinding? Let's move onto Thursday morning. That's a drop of over 400 dollars in two trading sessions. Now a look at these two series of Puts at 11:00 A.M. on Thursday morning. Look at the volume of trading in the second series shown. ... So many questions can now be asked? Is this a "catching a falling knife syndrome? Is this stock going back down to the $100.00 like it was trading at last month? Might it now catch a slight rebound? If you just made in the last two days like $50,000 playing the Puts starting with $5,000 would you now risk like $5,000 again and throw it back into tomorrow's expiring $255.00 Calls? Thousands of traders are now glued to their chairs watching this unprecedented action. Might you buy next week's out 255 Call series? To help better put this into perspective here is it's one year chart. Thursdays at n...

Hertz Global is on a terror. . Stocks in the $5.00 range sometimes do that. Yet really it's the Avis Budget short squeeze that is causing this stir. Look at how it jumped just over $105.00 dollars today. How often do you see a chart like this? It's a short squeeze and the stock is trading on high daily volumes. At one point this morning (a Tuesday) there was a "stop trading" on it. Trading options on it defies logic as they are so expensive. Look at this one example. These are the 700 series of Calls and the stock is only trading at 11:17 a.m. at $665.00. In other words they are $35.000 "out-of-the-money". Look at how crazy expensive they are. The stock would have to jump $105.00 or one hundred and five dollars by the end of the week just to break even! Who would be crazy enough to make such a bet? Day traders would be because they are banking on the effects caused by the stocks interday momentum. Let me explain this better by showing you an end of day re...

This blog is not going to be an exhausting study of this topic. I just want to show you a few charts found in recent blogs and comment on which ones seem to skirt the issue of "time-value-concerns' and which ones don't. 1) Avoid Thursday at the close Call options. In this case Thursday is the second last day of the above chart. If you guess the wrong direction on the close it's going to be game over on Friday when the options expire. Thursday at the close on options that expire the next day are the biggest time value traps you can buy into. If the stock moves in the wrong direction it's game over. 2) Ford on a Monday going into Tuesday. On this chart April 13th is a Monday and Tuesday is the 14th. Can you see Ford closing strong on the close of the 13th? It would make sense to get in on the stong closing because these Calls would still have four trading days to recover if Tuesdays opening was not all that spectacular. 3) This time it's Caterpillar and it...

Tesla was up 11% in the last five days. Look at it's one and five day charts. ... Now here are one series of it's Call and one series of it's Put options with only 42 minutes of trading life remaining in them. Might these Calls rebound back upwards towards the closing? Afterall the D.J.I.A. is up almost 900 points on the day and this is one of the hottest stocks all week. The 400 series of Call options at this time are "in-the-money" by $.72, and are priced at $1.88. That's a premium of $1.16 over the striking price. Imagine all of the money lost by the existing 400 series of Call option holders in the last 60 minutes! Couldn't the stock now rebound two or three dollars in the blink of an eye? It did afterall once again just drop over $5.00 a share in the last hour of trading and it now seems to be holding steady. That's the carrot now dangling in front of everyones eyes. Is it time for a quick flip? If you have made twenty or thirty option trades on ...

The company is running on all cylinders. It has more orders than it can handle. Now look at how it is trading on the opening. There seems to be selling pressure on good news. The D.J.I.A. is not doing very much and it's a Thursday at 11:00 a.m. Now a personal thought. Thursday morning are one of the worst time of the week to be looking at Call options that expire on the next day. Period. That said, look at these "in-the-money" Boeing Calls that expire tomorrow. Buying "in-the-money" Calls on a falling stock can be a heart-rendering experience. . Now let's move forward by about forty eight minutes. What do you think could be happening? Charts like this can now start to wander. These could be dangerous options to be in. Now this, an end of day reading. Let me first ask you a question? Do you think Boeing will go up tomorrow? Might it do the impossible and jump up five dollars on the day? What I forgot to mention that the next series of Calls on it higher u...

Let's start with this. A five dollar drop is one of the biggest drops in days. These Calls don't have the strenght of Calls purchased at the close on Fridays which then give you the advantage oil prices shifting over weekend discontent. Let's see what happens. Now a Wednesday report. There was no real bounce back up however the D.J.I.A. sold off at the end of the day. The 148 series of Calls hit a high of $2.95 and closed at $2.09 with the stock off 23 cents on the day. Trying to follow the Strait of Hormuz news is never easy to do and thousand of troops could be sitting ducks if things suddenly catch fire. One or two ships getting bombed would set off panic. These Calls still have two full days of life in them and anything could happen. These short term options are really a play on Trumph messing up.To be continued. Now this on Thursday morning. $1.99 to $4.30. Yes you can play these options. Trump wasn't going to solve his problems in a few days. This was a case ...

Let's jump right in. It's Monday morning and here is how the 12 series of Ford Calls that are expiring this coming Friday are starting the week. The "bid-and-ask" on the stock was down about $.05 cents in the premarkets. The markets are sometimes slow to get going after a weekend. If the stock opened lower in sympathy with the markets opening lower, how low could this $.27 premium trade down to? Would they then be a good buy if they dropped to like $.19? They do afterall still have five full days of trading like left in them. Now this, today's action. It was nothing to crazy. The stock only moved up $.03 or three cents on entire the day. This printout is not pretty but it tells you a lot of stuff. 1) The low of the day. It was $.11 or eleven dollars a contract at around 11 a.m. Yes the stock sputtered a touch, then it moved up again. 2) Look at the high of the day, $.27 or twenty seven dollars a contrct which is over a double from the low of the day. 3) I am not...