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Caterpillar And Tesla. These Are Scary Times To Be Trading Options.

We are witnessing huge intraday price movements on stocks like Caterpillar, Deere and to a lesser degree Tesla. Tesla sales are off in Europe as BYD continues to drop off boatloads of new vehicles into countries never before receptive to their offerings. Other companies in other industries are also facing scary times. Nvidia's recent earnings report has helped to validate that teck stocks still have relevancy. Things for them only a few weeks ago kind of looked scary. "Market rotation" is now the new theme in the spotlight as investors worry about where to park their money. Caterpillars and Deeres recent meteorological rises are under attact. Tesla has a price earnings ratio which is sky high. What's that all about? Silver stocks continue to rise and Bitcoin holders are not sleeping well at night. The price of gold has gone up and is not showing signs of coming off. People are now wondering if they should be lightning up on the weight of their jewerly boxes. Investo...
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LiveWire

My last blog was about Harley Davidson and what I didn't bring into the conservation was their spin off business which is building electric motorcycles. To be honest these bikes are not getting rave reviews. Two complaints are their crippling range and the possible issue of them being more dangerous to drive because they are so quiet. There is also competion from abroad. Last quarter they built only 63 of them and that experience is part of the company expecting to incur a loss of over $115 million this year. If you do the math each bike built cost them over $200,00.00. A $115 million dollar loss vs a profit of $1.3 billion for Harley Davidison. That loss makes a small dent in the overall big picture and in the process of getting going they used other people's money. Nursing this project to life from a business point of view has merit. Covid didn't help anything. LiveWire has to go slow until the product itself evolves to a level they feel proud to put their name on. Investors know this companies pedigree. See it's chart and read this.
Now go back to the previous blog on Harley Davidson. Put this puzzle together anyway you want. Forcasting of 750 units on the low end is still a three fold increase in production levels from where they are at now. Could they turn to be profitable in the next 1,000 days? Maybe. Yes there are options on LiveWire. Here are the Oct20th/2024 Calls with a striking price of 7.5 and 10 dollars. That's as far out as you can go and no one is trying to play them. The bids and asks are to far apart.
Keep in mind the company will continue to lose money all year. What a muddle. There are easlier games to play.

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