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Deere Trading Sideways On October 1st 2024 - Few People Trade These Ones

The stakes are huge. Is Deere slipping? Here is it's five day chart. Could Deere slip to $412.00 on the opening? If it did, could it slip further? The chart looks to me like it wants to open lower. Could you grab some Call options on a weak opening and try to play it for a rebound? Does history repeat itself? Here are how the 417.50 series of Calls traded yesterday on Oct 1st. Can you see how they dipped on the opening and came charging back up? That's the kind of action option traders like to see. Look at how few contracts trade on a daily basis. Clearly trading Deere options is like skating on thin ice. To add some sort of prespective on todays action here is how the indexes traded today. Shown above was Deere's five day chart. Here now is a look at how Deere traded traded today. After a nervous start it showed some strenght in the early afternoon. Now a premarket look at Deere on Wednesday October 2nd. Look at these four stocks and look at the premarket bids and ask
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"Ford" and an Extreme Opportunity Missed

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 ten cent moves in the stock's price. .
The first series of options illustrated had a striking price of 13 and the second series illustrated had a striking price of 12.5 and both performed nicely. Notice also that the stock actually dropped a touch on the opening so all this "good news" was a Friday after the opening bell event.
It doesn't really matter what the news was, its more just recognizing the power of good or bad news on stocks in this price range when they have options on them expiring that day. What was the good news? Well honestly it doesn't much matter. A few weeks back I played the rebound on "Ford" after bad news about a "Chip Shortage" took it down. Folks. I don't make this stuff up. With a click of a mouse and with money in your account you can be part of this action. Am I rich from playing options? No. Some people equate trading in options to the experience of going to a casino. The difference here is that the house doesn't win when the volume of shares traded triples in one day on a stock like "Ford" and when it surges upwards or downwards in price. Going forward "option trading" is going to grow exponentially. Todays traders have become much more forward thinking. *** I note "Ford" closed Thursday at 12.49 so purchasing the "out-of-money" 12.50 "Calls" that expire the next day would not be that big of a stretch. In contrast, purchasing the 13 series of "Calls" would have being an extremely aggressive trade. Both end up performed well."Ford" opened on Friday at $12.70 and hit a high of $13.47. Moves of that magnitude are unusual. What was the news that caused this uptick? A report on the numbers of buyers putting deposits on a new Ford 150 electric truck. Everyone seems to want one.

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