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Showing posts from July, 2021

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Caterpillar And Tesla. These Are Scary Times To Be Trading Options.

We are witnessing huge intraday price movements on stocks like Caterpillar, Deere and to a lesser degree Tesla. Tesla sales are off in Europe as BYD continues to drop off boatloads of new vehicles into countries never before receptive to their offerings. Other companies in other industries are also facing scary times. Nvidia's recent earnings report has helped to validate that teck stocks still have relevancy. Things for them only a few weeks ago kind of looked scary. "Market rotation" is now the new theme in the spotlight as investors worry about where to park their money. Caterpillars and Deeres recent meteorological rises are under attact. Tesla has a price earnings ratio which is sky high. What's that all about? Silver stocks continue to rise and Bitcoin holders are not sleeping well at night. The price of gold has gone up and is not showing signs of coming off. People are now wondering if they should be lightning up on the weight of their jewerly boxes. Investo...
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Caterpillar Earning Report Plays

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So tomorrow is the big day when Caterpillar releases it's second quarter earnings report. It is expected to be good. Boeing just had a great earnings report yesterday and analyst are expecting Caterpillar to also report decent numbers. Let's look at the five day trading charts on these two companies and this mornings super strong premarket indicators. (It's always good to be selling into strong premarket indicators because history tells us that they never stay strong forever). It's July 29th and Caterpillar's earning report is tomorrow. Ford also just had their earning reports and good new also on that front. So far so good? Good news everywhere right? It's only good news if you can capitalize on it. What am I implying? Well I don't want to digress to far off topic however option trading can be an exacerbating experience. I missed the Boeing and Ford trading opportunites despite the fact that I anticipated both of these two companies would do well. Do I...
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The Trade of the Year

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It's not that complicated however it kind of slipped under the radar. It was a big name company we all know called Lowes. The payoff was wild. What are we looking at? Options that closed on Thursday at ten cents a contract and opened at one cent the folling morning, a Friday which then then hit an interday high of one dollar and fifty cents. A one thousand dollar investment would have went as high as $150,000.00. Folks, all of this is legal and anyone can play it. You could have made it all by lunchtime. What happened? Well we are talking about the 200 series on Calls that expired yesterday on Friday July 23th. At the start of the trding session they were over $3.00 "out-of-the money. Very few traders saw value in them. Yet Lowes did close strong on Thursday the day before it. Then it wobbled a touch on the Friday opening and resumed it's upward charge. The price of lumber is dropping and many people are waiting to purchase lumber at these new lowering prices. The kicker ...
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