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Climbing The Wall of Greed.

It's a stupid market with stupid things happening. It's exhausting. Investors have to change out their investment strateties. Caterpillar and Deere had big gains this week and one week Call options on both of them went up in price 400 percent. In recent blogs I have talked about things like coming late to the party and making trades where you would make out like a bandit. Look at this mornings action in "Unusual Machines". I have talked about this stock before. Now this. A look at the Call options on "Unusual Machines" at 9:31 a.m. this morning after the stock jumped $1.57 on the opening. These Call options jumped 300% from their close on the previous day. Also look at the large open interest in these options. These Calls still have one week's life left in them. The question now is who would you be stupid enough to be throwing more money into this? Not me after all this that has happened. Now this. In forty four minutes the Calls that were already u...
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Nio And An Earnings Report

Todays action is that a quarterly report came out showing that their car production number were down for the quarter. I have talked about this company before. Back on June 13th I wrote about the stock jumping on the news that their prices were coming down. Last November 28th I wrote about production output increasing and I wrote about the company on March 11th, 2022, and Feb 27th, 2022 when it was trading at $20.94. Back in November 2020 it was trading for over $60.00. One car they race is the fastest electric car in the world. Here is how things looked this morning after this report.
More news.
So now what. It's one year chart.
Now this. Look at how it dropped on the opening.
Now this. Nio was down $1.16 nine minutes into the opening action.
So what make of all this. Production is off, the stock is now discounted, buy "Calls" like five months out for protection and try to get a quick rebound. Here is what happened.
In at $163 and out at $238. Nio is not going away and this morning's dip was an overeaction. Plays like this are more common than you might think.** Here is a look at it a few days later. Mathematically it's inprobable that the "open interest" number has remained unchanged.

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