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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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Ford and The Call and Put Option Game On It Has Slightly Changed.

Look at this chart. Do you recognize something a little bit different in the striking prices? They have changed and here is proof.
Forget playing the 12, the 12.50, the 13 and the 13.50. Calls or Puts. Now they are all 11.85, 12.35, 12.85, 13.35 Calls or Puts. What is now different is that the striking prices have now shifted downwards by .15 cents or upwards by .35 cents depending on how you look at it. Does it make any difference to option players? Has it become slightly more challenging to do the math? Not really as everything functions just the same. Just learn to get use to it. That said, here is how the stock Ford is now trading in February. .
Now look at these same Call options on the morning of Tuesday February 22nd two trading days later.
The market tanked on Monday and the executives at Ford are making comments that are casting their operating realities in a bad light. Institutional investors have limited patience for these kinds of outbursts.
Then this.
Ford's public relations department needs to coach their management to button their lips. Here now is a printout of the same Call options we showed above two days later. They have tanked.
The bottom line is the playing Call and Put options on Ford can be a wild game when there are so many moving parts in play. Yet then again these price gyrations make for interesting trading opportunities. Don't be afraid to play them.* The longer term Call and Put options like the Ford 12 and 13 and 14 Calls remain "as is". It's only so far, the near term Call and Puts options that have the new striking prices.

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