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Climbing The Wall of Greed.

It's a stupid market with stupid things happening. It's exhausting. Investors have to change out their investment strateties. Caterpillar and Deere had big gains this week and one week Call options on both of them went up in price 400 percent. In recent blogs I have talked about things like coming late to the party and making trades where you would make out like a bandit. Look at this mornings action in "Unusual Machines". I have talked about this stock before. Now this. A look at the Call options on "Unusual Machines" at 9:31 a.m. this morning after the stock jumped $1.57 on the opening. These Call options jumped 300% from their close on the previous day. Also look at the large open interest in these options. These Calls still have one week's life left in them. The question now is who would you be stupid enough to be throwing more money into this? Not me after all this that has happened. Now this. In forty four minutes the Calls that were already u...
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Caterpillar Calls On the Last Trading Day Before Easter.

My most recent blog on Lucid was spot on. In this market with 400 point daily rallies playing Call options on stocks in the thirty dollar price range is the name of the game. I would however be remiss if I didn't point out the action in Caterpillar yesterday. Look at it's five day chart and look at how the Call options reacted. What a nice breakout.
I am not going to bore you with all the details however this is how one series of Caterpillar Calls traded on the day. Look at the low of.06 and look at the high $4.00. I have followed stock options for over forty years. This type of action on Caterpillar on a Friday might happen once every five years. Going back two or three years ago when Telsa was enjoying a growth spurt, Friday Call option trading on that stock made many option traders rich. Bear market option trades, something not really currently on our radar can also be super rewarding. People forget that stocks like Deere and Company can also sometimes drop thirty dollars in one day. Happy Easter.

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