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The Auto Industry Is Under Control

Look at this printout. Almost every stock on this list was totaly flat. Tesla up fifteen cents. Do you know how seldom this happens? It never does. Yet it happened today. Now this, a chart of how Telsa traded on the day. Look at the three hour price swing between 11:00 a.m. and 2:00 p.m. Now this. The 30 day out Call options on Tesla. Now the thirty day out Put options. They mimic the same kind of price swings. Intraday price swings of $7.20 and $6.97 on these two series of options. So why is this important? Watching thirty day out options is increasingly becoming a smarter way of churning out profits. In these examples one is putting out sums of money like $2,000.00 U.S. with the expections of daily returns, well in this case about $700.00. I know what you might be thinking. You might be thinking that the risk/reward aspect of the equation doesn't make sense. In response to those concerns I would say employing this strategy works best for traders already engaged in trading ot...
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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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