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Caterpillar Calls Again.

Last Friday we showed how one series of options traded on that day. Caterpillar was up $21.96 on that day. The Call options jumped $6.91 or 46.96 %. Only 13 contracts traded. Today Monday was not much different. Caterpillar jumped upwards on the day. The same series of Call options, the 665 Calls with the same striking price jumped again ( only on one contract ) and closed the day bid $37.95 - ask- $40.40. It helped that the DJIA also jumped up. Now here is it's five day chart. All this on no real news except the angle that it makes power generators. So Caterpillar is up over $50.00 in only two days. What to do? Buy these short term Puts that expire this Friday? Fighting strong stocks at the start of the week using near to expiring options is to big a risk to take with so many stocks now in nose bleeding territories. Now this. It's one month chart. Trading volumes are up. When stocks get hot like this something has to give. The question is when. I don't like fighti...
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"Ford" and an Extreme Opportunity Missed

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If you were out cruising in your Mustang convertable on Friday you probably missed this action. It's a shame because had you purchased $1,000 of a certain "Ford" series of "Call" options on the opening and sold out just after lunch you would have made enough money to turn your ride into something a lot nicer, something like $47,000 nicer. Honestly, this did happen and it wasn't all that complicated trade. This blog from this point on is going to write itself. Try and follow this action. Look at the high and low on these options. .01 and .47 . One thousand dollars actually turned into $47,000 if you caught it right. I have talked about how options on stocks in the ten and fifteen dollar range can often be darlings to play and "Ford" and "U.S." Steel are two of these darlings with options series that are the most splendid to play because their liquidity is excellent, bid and ask prices tight and price movements swings on only five and te...
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