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What's Next For Caterpillar And Deere

Let's start with Caterpillars five day chart. You can see how it zoomed upwards this week as a result of it's quarterly earnings report. If you want to play the downside next's weeks options are going to cost you something like $1,000.00 per contract. Here are how one series of Puts, the 575 Puts closed the day on Friday. So the stock has to drop like $12.00 in five trading sessions just to break even. What a daunting challenge trying to figure out these ones. Many option players accustom to playing the ups and downs of Caterpillar when it was trading at price levels like $325.00 only six months ago now feel totally out of the game. It's now not a game for the little guys. I get it. Now this, a look at how Caterpillar traded on the day last Friday. Between 10:00 a.m. and 12:30 p.m. the stock dropped $15.00 dollars. The one day options that were expiring that day had an amazing price swing. So a new trend I see happening is a shift away from playing one and two week o...
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Toyota - Just Buying a Straight Call Two Weeks Out

A recent past blog highlighted the fact that the volume in Toyota options is super light. Now read this. There was a change of leadership.
Sales are up, the stock is down. They now have the second, third and fourth best selling cars in the world. It was just reported April global sales were up.
Here is the trading in two "in-the-money" Call options that expire in two weeks (The trading on May30th and on May31st).
Now May 31st.
Here is the chart.
This is all so strange. Only one Call option traded in two trading days. One! I must be an odd duck writing about this or missing something. Production levels up with top selling brands which equates to economies of scale. A proven product with a good reputation. A stock off in price two days in a row in a soft market. Any kind of a reversal would send these Calls up 50% in one day. At this point in time the higher up 140 Calls with two weeks to go would also surge on a two dollar reversal. That would cause an instant double.
I hate blogs like this which say something might double. I could look like an idiot for going so off tangent. Oh well. Check back later to see how all of this played itself out. ** One might wonder if you at mercy of the option makers in trading in thinly traded series like this. Yes and no. When something happens to change the projectory of a stock like Toyota there is no stopping it! ** It popped on the opening. Yes you can play Toyota.
Here is how it closed out the day.
...
What a nice one day move. This proves that Toyota is tradeable.

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