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Caterpillar Reports This Week

Caterpillar builds things the world needs. Rivals are few and far between. Here is how Caterpillar traded last week. It was down $4.35. The stock has had a good run in the last while. Option traders seem to stay away from playing options on Caterpillar. This stock began a major move upwards back in September. Now we are in a situation where Caterpillar's quarterly earnings report will be coming out this Thursday morning before the markets open. Typically when this happens the stock moves up or down like $10.00 to $20.00 in the first few opening minutes of trading. This time should be no different. Analyst have already weighted in their opinions of what the earning numbers will look like. Here is how two series of options (one series of Calls and one series of Puts) closed on Friday Oct 24th. These two series of options still have one week of trading life left in them. ...... Both the Calls and Puts are super expensive. Bad news could rock the stock for like $15.00-$35.00 per sha...

McDonald's And An Earnings Report

I was sitting in the drive through line yesterday at McDonalds redeeming a free coffee sticker won from being there a few days prior. It was a long line up for mid-afternoon. I am not a fast food junkie. I found myself thinking of how the Domino Pizza stock was on a terror for much of last year but not so much now. When we were all locked in last year everyone was ordering their pizza. I was also wondered if they would now accept my little free coffee sticker as it was only thumbnail size. Then when I pulled up to the drive thru window I hit a patch of bees. Apparently for whatever reason they were enjoying being at that window. They gave me my free coffee. Boy it was busy there.
I note in this option series that there were only 292 open contracts. That small number suprises me. Why didn't more option players see this coming?

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