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"Tony The Tiger" - A Food Stock

The mood of Wall Street is now changing as the reality of tariffs is starting to kick in. Two weeks ago not so much so. Kelloggs had "so-so" earnings come out a few weeks ago and the stock exploded upwards. Note the very last line above mentions the effects of tariffs are not taken into consideration. So many stocks with "so-so" earning reports have jumped in price based on the "lets make America great again" slogan. Deere stock is shooting to the moon as I keep writing about in spite of declining sales in the last quarter. The sentiment seems to be that they are immune to tariffs. On paper they might be. Read this. Americans are struggling to buy gas, eggs and insurance. Total housing starts in the U.S.in 2024 were down 3.9%. Walmart, the recent darling stock in the last four weeks for Call option players woke up this morning with an earnings report which was healthy but with came with some caveats. Here is what happened. Perhaps the U.S. is starting ...
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"Caterpillar Calls" and a Thursday Morning Bounce"

Does playing "Caterpillar" options on Tuesdays ,Wednesdays and Thursdays give you enough time to make money? It can be a little bit scary because your fighting the issue of time values eating away at the cost of your options and you have to get the direction of which way you think the stock is going to go lined up properly. Buying in late in the day looking for morning bounces is one way to play it. I prefer Thursday and Friday plays on "Caterpillar". This week on Tuesday I purchased both the 237.50 series of Calls on "Caterpillar' and the 240 series of Calls. On Wednesday I was down 30% on my investment from the previous days purchases and on Thurday morning there was a bounce on the opening. I got out.
This little prinout says sell one contract, the 237.50 contract at $5.27 at 9:40.a.m. On the buy side I bought in on Tuesday at 3:47 p.m. and paid $2.22. Here is the ticket and here is another chart showing the bounce. ( My 240 Calls did equally as well, I bought the 237.50 contract as insurance after the 240 Calls were starting to disappoint on Tuesday).
How did I pick my exit point of 9:40 a.m.? That's always the really difficult part I struggle with and more often than not I get out to soon. In this case can you see how a second buying opportunity presented itself later in the afternoon. Why do I like "Caterpillar" Call and Put options? One of the reasons is that seldom does this stock have news releases. That's to me is a good thing.

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