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Tesla Calls On A Tuesday That Expire the Next Day

Would you play one day "out-of-the money" options on a series of Calls that are already down 75% on the day and expire the next day? Seems kind of stupid right? I am talking about Tesla. Tesla trades on the Nasdaq which is taking a beating. Why buy in here at this particular period of time when the support levels on it are still few dollars lower? Why buy Calls with only 1.5 trading days life left in them? Well at 1:00 p.m. the afternoon portion of the market is about to begin and these options are trading at their lows of the day. "One-day-option-traders" have to think in terms of what might happen in the next two hours or so. If a rebound happens in the next two hours just get in and out. These types of option traders take risk on chart patterns that have yet to make reversals. It's can be a lonely and expensive game to play and if the desired results do not pay off one must quickly revert to different strategies. How the closing chart looks today will hop...
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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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