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The Markets Never Stop. The Stock Lowes And Forward Looking Thinking.

An earning's report came out and some of the reason's the stock dropped made sense. Let me tell you what happened and why. Lowe's sold off in price over $12.00 in one day on an earnings report. How bad was the report? Well that is something that is debatable. Some people would say that past sales are not a good indication as to what might happen next. Not many option traders attempted to trade in it. Some traders derive more pleasure in playing the rebounds after these types of announcements come out. Here is what their C.E.O said. It is her job to try to put was a positive spin on things. Every word she uttered was well rehearsed. Lowes and Home Depot are always difficult to play because their stories can be spun in so many different ways. On a different note, the Put options five dollars "out-of-the-money", which were the 265 series of Puts were a cheaper and a more profitable way to play this action than the 270 Puts. Yet then again, if the stock only dro
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Boeing Calls And Caterpillar Calls Five Days Out On A Monday Morning.

First Boeing's 30 day and 5 day charts. Boeing can bounce five dollars in a week. That's what some traders are now hoping for.
Now look at these two series of Calls and look at the impressive number of Call options opened in the first 30 minutes of trading.
Traders are even jumping into "out-of-the-money" Call options thirteen dollars higher in price than what the stock is now trading at. If the stock was to ever jump four or five dollars in one day these options would pay off handsomely. If not they will quickly languish in price.
Now lets compare this to the trading volumes in the first 50 minutes on Caterpillar. Here are its five and 30 day charts.
Notice how light the trading volumes are in comparison.
Why is the option trading volumes in Boeing so much greater than the option trading in Caterpillar? One reason might be the way this Boeing chart looks on a longer term viewpoint. It explains why Call options once again $13.00 dollars "out-of-the-money" are attracting attention.
Investing in Call options on a Monday morning is to simplistic a strategy from my point of view. In my last blog I talked about Caterpillar jumping sharply on the previous trading session, a Friday. Guess what? The rally carried over today. Here is how the trading day ended for Caterpillar.
What about Boeing and the wildly "out-of-the money" Calls? Well here is it's current five day chart and here is how the two series of options we were watching closed. Boeing only inched up a touch.
Note the 200 series of Calls did not do that well as buying into them is kind of a stretch. All this action today is somewhat atypical. READ MY OCT 3TH BLOG. "BOEING-TROUBLE WHERE TROUBLE SHOULDN'T BE".A Tuesday Oct 10th update. Here is a look at the 190 Calls five minutes into the opening trading. Boeing is up.
Here now is how the five day chart looks.
To be continued. Well maybe not. The point of this blog was to say that buying one week Calls at the start of the week is not the brightest thing to be doing.

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