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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 up...
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Boeing - Towards Understanding How One Must Learn To Pick Your Battles.

A multitude of factors have kept Boeing down since my last blog about it in April. What happened this morning was a touch unusual. First the five-day and one-day chart.
Now this. Can you see the morning jump at 11:00 a.m.?
The top reason for looking for opportunities like this is that the weekends often wash away negative sentiments if only for a brief period. These are "out-of-the-money" Calls with 4.5 days of trading life in them. If they had only one or two days of trading life in them then the risk of trading them would be too great. Note how the volume of contracts traded greatly exceeded the open interest. Traders got in and out. Traders recognized a break-out pattern. What's going to happen next is anyone's guess. This is short-term options trading. Stocks in the 200.00 dollar price range offer more opportunities like this than stocks trading under $100.00. That's just the way it is. Let's now look at this morning's action in Fisker. It's a totally different option trading experience.
What happened to cause this jump?
Yes, their Call options popped. Two different types of trades, two different situations. How would anyone have any advance notice the Fisker news was about to happen? Would you want to be sitting in Fisker Calls when the stock has been disappointing for such a long time? Not really. In option trading, you have to learn how to pick your battles.

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