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$Home Depot And $Lowes On A Wednesday Morning

These are both what I would call "Big Boy"stocks which are somewhat volatile. Their price movements are often dictated by economic reports. Today is a Wednesday which is mid week in the weekly trading session. Options purchased this morning that expire this Friday will give you one full day of trading today and two more full days of trading. Both of these two stocks are up about $10.00 per shsre in the last two days. Both stocks can move either way. My focus is on the Puts which are both somewhat expensive. They have to be because these stocks are so volatile.Catch the right direction and you will do quite well. Retail stocks like this have a wide following and the price of both of these stocks can be affected by a number of differing ecomomic reports. For this reason the timing of swings can be somewhat of a guessing game. Now this. New home sales in the U.S.A. where down 6.2% in March and down 11.3% in April. It's May numbers are not released until June 24th. Now Home ...
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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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