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Showing posts from January, 2022

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A Scenario For Insider Trading.

I think something suspious happened today but I have no proof. It's what happened to Boeing Calls. First it's one day chart, on a day the D.J.I.A closed down 453 points. ,,, Can you see the stock spike at 1:18 p.m.? What was that all about? Why on a Friday afternoon? That is when there are Call options expiring in a few hours. That's when anyone privy to this infornation just prior to it being "hot-off-the-press" would be buying in. ... ..... ... One could say that this was an anticipated event with teams of employees at Boeing negotiating terms and conditions of this sale. They would be in the know. If you think about it the release of "purchasing news" like this should be limited to happening only when the North American market's are closed. In that way news like this would have more time to be disseminated and a greater number of existing shareholders could plan to use this event as an exit point. Thus the jump in price potentionally would no...

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...