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Ford Kind Of Threw A Curve Ball With The Release Of Their Quarterly Earning's Report

First here is how the stock traded on the week. It's not very often you see a chart that looks like this after a company comes out with a quarterly earning's report. One would expect that if a stock goes up on an earning's report it will usually stay up. How good was it's earning's report? Yet sales were down 8%. All the while something else had happened. A few days prior Ford made this remark. Details of what this all meant were somewhat vague. Is Ford going to start transitioning itself out of the automotive industry? During World War Two Ford started building airplanes called the B-24 Liberator after first building the "River Run Bomber Plant". When Ford starts to talk about building something new the entire world listens. Isn't it true that the stock Caterpillar has also hinted of following a new path diversification? Here is what I am talking about. This "Ford Energy" notion came out only days before their earning release news. Was ...
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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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