Featured

Vinfast

I see this companies electric vehicles on the road and I have to admit they offer a fantastic ten year warranty. Are they reckless in making such a offer when they have no track history? Might not high servicing costs come back to bite them further down the road? Look at how the stock jumped this week on this good news. While high production increases are only one part of a companies story they are encouraging to their shareholders. Visit there website and learn about their dealership network. The waiting game begins to hear about their next earning's report. Now look at these three charts. Back on Sept. 6th I wrote a blog on "Nio", a chinese electric car company. Here is it's chart that I showed in that blog. It shows Nio jumping 25% in one week. Now let's look at it's three month chart. Recently I did some blogs on trading options in the five dollar range. The scary part is we have seen how other stocks in this space are down. Look at these four. None
Post a Comment

The Concept Of Playing Caterpillar Calls From An Oversold Situation

There is a danger in playing oversold situations. How do you truly know it's oversold? Well last week there was a total blowout in the markets as it kept dropping everyday. Each day last week was a blur to the downside. What are weekends all about? They are a reprieve in situations like this from all of this negative energy. Thing's can't go down forever. Here is Caterpillar's most recent chart.
So this morning, with fresh minds coming to the screens an uptick could be in sight. I would think so, I watched this mornings action. Look at these printouts. I was tracking one of the series of Caterpillar's Calls. It was lonely experience. Few people were watching this action, or lack of action. There were no trades in this series of Calls in the first few minutes and the speads were far apart. Where was the rebound? Look at this..
">
Wow. Only 2 contracts traded 9 minutes after the opening bell and 31 contracts traded in the 225 Calls an hour into the trading session. No one saw an uptick coming but it did. Let's move on. Here is how these options closed the day.Trading options on series like this (a big name stock after a weekend reprieve from the slaughter and no real volume on the Calls) is a good strategy.
No volume, to me that's a good thing. Tomorrow should be a good day. ( the Yahoo chart cut out at 2:00p.m.)
****** A next morning March 14th update. These options are up.
At 10:45 a.m. look at how light the volume of trading is. Look at a morning jump to over $6.00 per contract. Amazingly next to nothing in the way of Call options traded on it. Yet it's Caterpillar which has a huge following. I find that all so strange. But then again option traders are afraid to play options on this stock because it's not like playing Tesla or Boeing which both have more knee jerking reactions to ongoing news. That's the way I see it.

Comments

Post a Comment

Popular posts from this blog

A Fireside Chat - One Year Options and Thirty Day Options. Which is Better?

Image
Some say to think small, not big. Trying to play Disney options is thinking big. It is a stock slighty out of favor. If we start with it's a three year chart, we will see it is down by about 50% over that period of time. Now it's one year chart. If the stock can break 110 in early 2024 the sky is the limit. It does have a lot of moving parts so anything could happen. Look at these Calls options one year out. One year in options buys a lot of time.They look reasonable. If the stock ever inched up to the $105.00 price level in the three or four months these options would jump up in price by about 50%. Even more if they had really good news. Yet it's the "what-if" aspect of the equation that castes such a trade in doubt. "What if" stories just don't cut it. There are to many variables in play. Then again, why are we even thinking of long-term Call options after a December's rally? Let's switch gears. If consumers are out spending for X-mas
Read more

Deere Lays Off /Tesla / Eli Lilly/ Home Depot/ Nio

Image
It was announced today, a Tuesday that Deere is going to lay off some of it's workers. Perhaps that news was leaked out last Friday and that's why it could have sold off last Friday afternoon. The stock basically has done nothing over the last three years but some traders love it for it's thirty day swings. I have talked about Deere before. The markets were accepting of this news. In other news Tesla Call option traders are rejoicing. Image getting in two trading sessions ago at $196.00 to watching it shot up to over $230.00? This was (it's up in the premarkets again) the Telsa trading opportunity of the year! Then there is upside movement in Eli Lilly. But then there is this background news. Now this. Talk of a hurricane. Will Home Depot go up? Then there is Nio. It's shares trade huge volumes and the stock has a wide following. Might it trade back up to $6.00? It's down almost half price on the year. One of the problems in trying to anticipate what m
Read more

I Wonder How The Back Office Is Going To Handle My Complaint

Image
The blog is about dealing with the back office of the brokerage company I trade with. This story happened today. Todays trading session has closed and I just made a telephone call to them just after the market closed to voice a complaint over how I feel I got short changed. Here are my background notes. 1) It involves trading the 370 Boeing Puts that expire at the end of this week. I bought in at 10:08:34 a.m. and sold out at 2:59:38 p.m. I was stuck in this position longer than I had hoped. I got lucky and did O.K., however that is not the point. 2) Here are my two "in-and-out" tickets. Two contracts in at 10:08 a.m. at $163.00 each and two contracts out then "at-market" for $365.00 each at 2:59.38 p.m. Now here is Boeing's one day chart. It dropped precipitously from 2:59:00 p.m.to 3:00:p.m. I just happened to be watching it at the exact time of the crash. That's when news came out that the "FAA opens Now a Boeing Inquiry over 787 inspections"
Read more