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Caterpillar Has It's biggest One Day Drop Of The Year

Look at this five day chart. At 9:45 a.m. yesterday Caterpillar was trading at $720.49 and then 3:51 Hours later it was trading at $676.95. That's an interday drop of $43.49 or a $12.40 per hour drop. What caused the drop? Yes it was reported that an individual in upper management sold seven million dollars worth of his stock however that shouldn't rattle the stock that much. Maybe the fellow needed the money to put an addition on his house. Did the stock sell off because the companies most recent earnings report, afterall after closer inspections wasn't all that great? I follow Caterpillar closely and panic sell off situations like this should be a message to management to better explain to it's shareholders the complexities of it's operating realities. The bottom line is that going forward, option premiums charged for "out-of-the-money" options will have to go up to better reflect the possibities of future events like this happening. One possible solut...
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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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