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The Markets Never Stop. The Stock Lowes And Forward Looking Thinking.

An earning's report came out and some of the reason's the stock dropped made sense. Let me tell you what happened and why. Lowe's sold off in price over $12.00 in one day on an earnings report. How bad was the report? Well that is something that is debatable. Some people would say that past sales are not a good indication as to what might happen next. Not many option traders attempted to trade in it. Some traders derive more pleasure in playing the rebounds after these types of announcements come out. Here is what their C.E.O said. It is her job to try to put was a positive spin on things. Every word she uttered was well rehearsed. Lowes and Home Depot are always difficult to play because their stories can be spun in so many different ways. On a different note, the Put options five dollars "out-of-the-money", which were the 265 series of Puts were a cheaper and a more profitable way to play this action than the 270 Puts. Yet then again, if the stock only dro
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Boeing and Caterpillar

These blogs are starting to get repetitive. Blogs about Boeing and Caterpillar rising after Monday's meltdown. The DJIA was up today over 500 points and here is how these two companies did.
Look at the extremely light volume in both of these two Call option series. What does this tell us? Two things. It tells us about the sophistication level of today's traders. Getting in on a Thursday looking for a one day bounce is not a smart way to trade. Secondly, these are both "in-the-money" postions and the best percentage kicks happen with near-to-the-money options. Let me show you the swings on the 195.00 and 197.50 Caterpillar Calls today. Both were up over 200%.
In both of these series the volume of trading exceeded the open interest levels. Out-of-the money postions in near term expiring Calls is where the action is on days that enjoy 500 point rallies.

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