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Caterpillar,Tesla and Nvidia Puts On A Tuesday Afternoon. It's 3:40:00 P.M.

Caterpillar is up $40.00. at 340 p.m. Might it sell off a touch before the close? The DJIA ended up closing the day 1,024 points! Let's look at these three series of Puts series which expire on Friday. First Caterpillar. Now Tesla and a look at it's Puts about four dollars "out-of-the-money". Now Nvidia with a focus to be watching it's Puts. These ones are also slightly "out-of-the-money". Now jump ahead to the closing reading. First Caterpillar once again.The Puts we were watching closed at $7.10 only ten cents higher than what they were trading at when we first looked at them. The Tesla Calls however jumped up to $3.65 from $1.90 and the Nvidia Puts jumped up from $.75 to $1.25. .. This is one approach to playing super strong days in the market without losing any sleep. Puts can sometimes be your best friend.
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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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