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Exxon Calls Options And War.

Last Sunday I started this blog and never posted it. Here is how it started. The next few weeks will not be normal times for Exxon options. Trading them for the last couple of months has being a walk in the park with crude oil prices stuck in a sideways moving price range. All that is suddenly going to change. Now on Tuesday afternoon I am showing you this five day chart and what one series of this week's Friday expiring options are trading at. The 152.50 series of Calls that expire this Friday. Now this at 3:13 p.m.. Let me point something out. Exxon spiked on both Monday and Tuesday morning. It seems to do that with the world waking up to new problems. In the opening minute or two of each trading session a feeling of panic is in the air. Will this happen again tomorrow morning? In my most recent blogs I have being emphasizing the new need for option traders to adjust their trading horizions to interday moves only and to avoid to trying to create overnight holdings. Let's wh...
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The Trade Of The Year On Caterpillar Calls. It's No Surprise It Happened On A Friday

In a past blog Caterpillar averted a strike and it was noted that the stock jumped to the moon on that news. Caterpillar has a large following and likes good news-made in America stories. Biden avoided his government running out of money late Thursday and on Friday the stock Caterpillar jumped to the moon. It opened higher and kept going up.There is no looking back now at what happened.
My May 29th blog talked about how Caterpillar had slight bounce last Friday morning and the light volume of option trading on it. With the stock going sideways to down all that week playing Call options on it was out of fashion. Things changed on Friday June 2nd. Caterpillar bounced. So here now is a look at how two "out-of-the-money" series of Call options traded on it on Friday.
Look at the open interest numbers going into Friday. Two hundred and ninety five contracts. Few traders were expecting the news to come when it did. This blog could now go in many directions. Last week both Caterpillar and Boeing struggled on the week and option trading volumes dried up. My attitude was not to trade, to wait for better days. I should have known better, the system is a little bit corrupt. Insiders could gain the most from a late Thursday release of good news. A one day pop in the next days options. That is what happened. On Friday the D.J.I. was up over 700 points. The one day options on Caterpillar were star performers. It was the "trade-of-the-year" on Caterpillar Calls. It doesn't look like any of the 100,000 or whatever the number of brokers and analysis there are out were clued into this action. So strange. * Also think about this. Caterpillar has something like 109,100 employees. I don't understand why there isn't more traders in on this action.

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