CAT Puts

Here is the chart and the price of one series of it's Calls. Last week we did a blog about Disney Calls. Now at this time, any kind of an upward swing could cause these Calls to double. Yet it's Tuesday and these Calls don't expire until Friday. For lack of better words these options are sloppy options meaning they are "out-of-the-money" options and somewhat susceptible to falling of a cliff if the stock decides to go sideways or down for a day or two. It's not like buying Tesla on the closing hoping for a ten dollar move on the opening and getting it. That's one of the reasons the volume in them is so low. Now this, nothing much to report on it's Wednesdays opening but they did jump to $1.16 at one point in time on the opening. To be continued.

I.B.M. had a bad week. Here is how bad it was. Sometimes you see charts like this. It was down $74.89 on the week. What happened? The headlines said "I.B.M. just sent a warning to dividend investors". Something about it missing earnings forecasts because of an artificial-intelligence-related shift in it's customers spending. That is a new one that we don't hear very often. Which way is this stock going to now move? It's probably dumb to be chasing this when the outcome will most likely be all so random. Yet it is I.B.M. which for a long time was at the top of it's game. Let's share the experience together. Here is what the Calls and Puts nearest to what the stock is trading at are doing going into Monday morning's action. These are options that expire on Friday at the end of this week. Don't gasp and say that the premiums exorbitant? They are not. On a sliver of good news they could rebound twenty dollars. Something is happening in our markets. I...

I realize that this type of a blog has a limited appeal. Many readers would dismiss this blog as being crazy. I get that. A blog in part about watching option pricings on one particular series of Puts, the 215 series of Puts on Boeing move on a minute-to-minute basis on a Friday just before they expire. Here we are looking at Boeing Puts at 9:56 a.m. The stock has just gone up and the series of Puts shown above have gotten crushed. Now a look at it's five day chart. This is where it will get interesting. Notice the stock has already had a rebound off a sharp morning dip. Traders who used the 212.50 series of Calls on Boeing's soft opening were already well rewarded. Only 121 contracts have traded during this period of time. Here is what the indexes are doing. So that's it. You could wager $100.00 U.S. plus commisions for one Put contract (the 215 seriess of Puts that expire in the afternoon), or multiples thereof and walk away for the next three or four hours or so in t...

Look at this big bump in the road. A spike down to $2.45. at 1:44:59.p.m. on a Tuesday followed by a full rebound. It's never good news when things like thus happen. There were rumors of it going into bankruptcy which the company quickly denied. Was someone purposely spreading this rumor for self serving reasons? From my point of view the uncertainty caused by this occurance adds an extra layer compexity to the long journey that this company endured. Will institutional traders worried about liquidity issues and the preservation of capital change their attitudes on this stock? Traders, for reasons I don't understand seemed to quickly brush this incident off. The company has recently raised more money and has cash on hand. Production numbers in 2025 were somewhere around 16,000 units and are now estimated to be around 21,000 units in 2026? This nervous dip muddies up the waters around this company. In the bigger picture this stock offers investors an opportunity to bet on a rebo...

Four years I was writing blogs about "Nio" when it was trading at $22.00 per share and building less cars than it does now. Now I ask this? Are these $5.00 Call options on Nio which expire in three days a trap? $5.00 options with three days to go are not for the faint of heart. Other option traders seem to be following this action. I like this chart and three days in option trading is a long time. .. Let's see what happens on the opening. Now Wednesday at 10:17 a.m. Take your money and run. This was a case of banking on a continuation of morning rallies. The charts kind of told us that might happen. Here is how this chart jumped again on the opening. I would think this game has come to an end.

Very few option traders trade short term options on Disney. The first two printouts below help to illustrate this point. Look at how low the open interest was last Friday on one series of it's Calls and one series of it's Puts. .. Most traders of these options are focused on making interday trades. The low open interest on both of theses series of options tell us that. Now look at how Disney traded on Friday, the last day of the week. Many of the trades made are AI induced. Reversals happened in the morning for example at exactly at 9:31:00 a.m., 9:33:00 a.m., 9:37:00 a.m., 9:41:00 a.m. and other times all to the second of the minute.That's a big the hint it's Ai trading. Now it's one month chart. Disney is down. Now a five day chart. Here is where it gets interesting. What it shows us is that some one week Put options would have doubled in price on a Monday and some Calls would have doubled in price on a Tuesday and the Puts would have doubled in price on a Wed...