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Stellantis On A Monday Morning After A Big Fall

Last week was a bust. Here is it's chart. Now there are a couple of options to consider. The most logical ones to consider are the $7.00 series of Calls or the $7.50 series of Calls. In the case of picking one or another I like the $7.00 series of Calls better. To simple a judgement call you you might say? Well the stock just lost 30% of it's value and many traders leading up to this sell off were afraid to play the stock knowing it's product lines are in general to expensive and knowing that there are no quick fixes. But wait, might the stock continue to slide on Monday morning? Probably not as the stock just had a pretty big haircut and all of the auto stocks now seem to be having issues. Why beat up Stellantis even more?. The other part is that this might now be an attractive buy in situation. Why not get in on this action at this attractive new pricing. Get in on the Friday near the close hoping to profit from a Monday bounce. Selloffs this large are rare. What would ...
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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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