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The Guts To Play A Friday Morning Bounce.

This stock seems to jump up every morning. It's Super Micro Computers and back in March there was a big stink when their former co-founder was arrested for illegally trying to divert $2.5 billion worth of AI servers with advanced chips to China. Might it bounce upwards on the opening tomorrow? These Calls which expire tomorrow closed at the low of the day. Now Big Bear Ai. Could these Calls double in price on the opening tomorrow? It closed strong on the day today. Now my friend Ford, which faltered on the close today. Could it rebound back up smartly tomorrow? Traders don't like this chart and Call option trading today on it was light. Now Hertz however this time we are looking at Call options one week out. The stock jumped today big time. Here is some recent news. Look at this unusual chart. It's the kind of chart which can jump upwards on the opening. Now Disney and a series of Calls that jumped 250% on the day. Is there room to jump some more tomorrow? This is a ...
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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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