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Caterpillar - Catching A Reversal On A Monday

Mondays are not the best of days to look for reversals however Caterpillar jumped upwards a modest amount which impacted the value of this series of Puts. The Puts are off about 50% on the day at this point in time. This is a 1:36 p.m.readout. Here is it's five day chart. Now its one day chart. It's Puts. Why consider them? It would seem like kind of a random thing to do. Why fight a strong stock? One reason is that the markets are only mildly up and could give back some of it's gains before the end of the day. Caterpillar could be gaining strenght based on all of last weeks business articles talking about how Caterpillar could potentially benefit from all this new AI movement. Caterpillar afterall builds heavy equipment which can be used in the construction of nuclear reactors. Notice that the five day chart is in an uptrend and notice the small open interest numbers in the Puts. That's understandable. No one wants to hold Puts on Caterpillar when it is in this...
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The Concept of Playing Thursday Options Which Expire the Next Day. Part One

Thursday morning trading patterns in the first hour of trading reflect human emotions running high. Could your favorite stocks in the $200.00 and $300.00 price ranges jump up three dollars on Thursday and three dollars on Friday? Wishful thinkings often shared by option traders on Thursday mornings. Yesterday Boeing jumped up over $4.50 and then down over $7.00. Will it jump back up agian today? It's Call options look so tempting knowing what the stock sometimes does. Then there is Caterpillar which was off during the last two days after jumping up earlier this week on government stimulus news. Why isn't that stock flying? This morning I used the "out-of-the-money", the Caterpillar 212.50 Call option series that were like four dollars "out-of-the-money" with one day to go for a short term ride. Was I dreaming? Not really. Caterpillar had a strong opening and these options remained relativly flat because they were so far out-of-the money. I bought in at a penny under the ask (on a five cent spread) after chasing it up with lower bids as it eventually started to rise and then sold out "at market" not to mess around. I was only in the position eleven minutes.( out at 9:26 a.m. Look at the chart below to see what part of the days action I was playing).
Look now at how this stock did on the day and what the 112.50 out-of-the-money Call options did.
I was lucky to catch the action the way I did. Now for a look at something really wild look at this. Today's action in DPZ. Tell me that insiders are playing this stock. What is so strange is the low number of option contracts traded. Look at the price swing in these Calls.
Sixty five cents to eight hundred and twenty. Wow.

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