CAT Puts

First here is how the stock traded on the week. It's not very often you see a chart that looks like this after a company comes out with a quarterly earning's report. One would expect that if a stock goes up on an earning's report it will usually stay up. How good was it's earning's report? Yet sales were down 8%. All the while something else had happened. A few days prior Ford made this remark. Details of what this all meant were somewhat vague. Is Ford going to start transitioning itself out of the automotive industry? During World War Two Ford started building airplanes called the B-24 Liberator after first building the "River Run Bomber Plant". When Ford starts to talk about building something new the entire world listens. Isn't it true that the stock Caterpillar has also hinted of following a new path diversification? Here is what I am talking about. This "Ford Energy" notion came out only days before their earning release news. Was ...

My last two blogs have focused on options expiring on Mondays and Wednesdays. This blog on a Thursday deals with options that expire tomorrow on Friday. AS A GENERAL RULE PURCHASING CALLS ON A THURSDAY MORNING THAT EXPIRE THE VERY NEXT DAY IS NOT A SMART MOVE TO MAKE. We have witnessed huge daily price swings this week where profits from option trading can be made in a matter of hours. Now let's look at Boeing's morning action. Sometimes when you see charts like this and if you're coming off a streak of three or four profitable trades it's best to jump in hoping for a reversal to the upside and ask questions later. Especially when the D.J.I.A is strongly up in price as it was. I quickly looked around and couldn't find any news to account for this price drop. Trumph was in China and we later learned that there was talk of China ordering 200 more of Boeing's new airplanes. China is always going to want more airplanes. Talk like this is only talk. Now this at 9:51...

Let's start with Ford's chart on the day of an earning's release. People need to buy cars and trucks to keep moving. That plus they are expensive. Here is how two series of this weeks Calls traded. Look at their percentage gains. I do a lot of blogs on Ford's quarterly earning reports. They are a bright spot for many option players. Did you pick up any Calls yesterday before the release of this earnings report? There was also this other news release shown below which came out a few days earlier. * ** Nio also had a somewhat similar gain on the day. What a day for Ford Call Option players. Ford jumped again on the following opening. * Now Ford on Friday morning.

This blog looks at some serious action. When you see the high trading volumes on the one day option in Nvidia you realize it's a game of serious calculations. What I want to show you is how intense this action is. Let's start with it's morning five day tradng chart. So the price of the stock jumped on the opening this morning and then quickly gave up about one half of it's gain. Let's break down this action by looking at it's early morning chart.The stock is starting to sell off after an early morning jump upwards. You can see the drop however the stock is still up on the day. Now the next printout shows how the 225 Puts reacted. The number I want you to focus on is the low of the Puts in it's first hour's trading. The dollar value was $1.10. That's how low the Puts dropped down to when the stock hit the top of it's morning spike. ONE TRICK IS TO PURCHASE PUTS ON AN UPWARD SPIKE. Here is how Nvidia ended up trading on the entire day and a fi...

Would you play one day "out-of-the money" options on a series of Calls that are already down 75% on the day and expire the next day? Seems kind of stupid right? I am talking about Tesla. Tesla trades on the Nasdaq which is taking a beating. Why buy in here at this particular period of time when the support levels on it are still few dollars lower? Why buy Calls with only 1.5 trading days life left in them? Well at 1:00 p.m. the afternoon portion of the market is about to begin and these options are trading at their lows of the day. "One-day-option-traders" have to think in terms of what might happen in the next two hours or so. If a rebound happens in the next two hours just get in and out. These types of option traders take risk on chart patterns that have yet to make reversals. It's can be a lonely and expensive game to play and if the desired results do not pay off one must quickly revert to different strategies. How the closing chart looks today will hop...

Options on Nvidia are widely traded. There are options on it set up to expire three times each week. Monday, Wednesday and Friday. Nvidia is on a terror as earnings keep skyrocketing upwards. Here are it's thirty and five day charts. Imagine buying last weeks Call options on the close last Wednesday and getting out on Friday? What a score that would have created. Now look at Monday morning's trading action. Now shown above is how the stock is trading on the opening. It is up. Didn't it's perky chart look like that might happen? These are "step-up-charts" which you don't see very often. It's 220 series of Calls are up 271% twenty minutes into the trading action on 110,800 contracts! But wait. We first started looking at the 215 series of calls however suddenly we are tracking the 220 "out-of-the-money" series of Calls. What's that all about? Can you see how dangerous a game this can be considering that these are "last-day-to-expira...