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Showing posts from January, 2022

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Looking For Options That Can Have Big Moves On A Near Regular Basis. This Might Help.

Since the start of the year I have done 9 blogs on Tesla, 8 blogs on Caterpillar, 6 blogs on Eli Lilly, 5 blogs on Exxon and less on others. Guess which stock fascinates me the most for option trading? The answer is Exxon and I want to share with you one of the most dramatic one day option price swings I have witnessed this year. It affected as you might guess "last-day-to-expiring options'. It happened yesterday on February 20th which was a Friday and it happened with it's one day Put options. What do I know about the world energy situation and the complexities of oil tankers circling the world? Not much. I do have two good friends in the oil business who don't know each other but they both say the same thing. They don't talk about business that much but say things are good when the price of oil is down and say things are bad when the price of oil is up. They both seem to work like six months a year overseas and they both are avid soccer fans. They bet on soccer ...
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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...
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