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Showing posts from January, 2022

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Ford Options At The Start Of The Week. Why trade Them.

Ford one week options. It's kind of random. Throwing money into one week Call options on a stock that was down last week. Here is how the 12 series of Calls are priced going into Monday's opening market. . If the stock has a good day these options could go to $.90. It's not much of a trade however if you're using a discount broker to do your trading it could be a good "in-and-out" situation. It could also be a real drag if the stock starts to tank lower. Now look at this recent five day chart on Ford. I used it in one of my previous blogs. Ford is known to jump on good news. Now this question? Does the simplicity of my thinking scare you? I also follow Nio but I don't like the way it trades. Here it is going into todays opening. Nio like other EV companies are battling it out for market share. I don't trust the narratives of what they are up to. Five day out options ( options that expire this Friday) in a way give you a one day free ride, meaning th...

Disappointment on The Opening - Caterpillar Earnings Report

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Caterpillar's earnings report. What I see is 4th quarter sales up 23%. Strong 4th quarter earnings of $3.71 per share.That's a solid number. Just think, the supply chain issue isn't being used as a mistake. Now look at the the opening options market. The stock is down on the news. Management made a few remarks about near term headwinds. They do that sometimes to temper growth expectations. These two quotes are the 205 Call series which expire today. One is at 9:44 a.m. and one is at 10:03 a.m.. They would be very dangerous to consider purchasing since its very unlikely that they could ever shake off this downward spike so early in the morning. So now what? It's at this time in the morning when the decision to reacte to this bad news gets tricky. The stock is down like ten dollars and the DJI is having a good day. There is a strong tempation to jump in on the upside hoping for a quick reversal. That's one of the things that makes option trading so difficult. One...