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Caterpillar - Catching A Reversal On A Tuesday

Tuesdays are not the best of days to look for reversals however Caterpillar jumped a modest amount which impacted the value of this series of Puts. This is a 1:36 p.m. readout. Here is it's five day chart. Now its one day chart. It would seem like kind of a random thing to do and why fight a strong stock? One reason is that the markets are only mildly up and could give back some of it's gains before the end of the day. Caterpillar could be gaining strenght based on last weeks articles talking about how Caterpillar could potential gain from this new AI movement. Notice that the five day chart is in an uptrend and notice the small open interest numbers in the Puts. No one wants to hold Puts on Caterpillar when it is in this uptrend. Could it has a soft selloff in the next two hours? Here it is now 50 minutes later. The "bid and ask" are almost unchanged. There is also not much change in the DJIA index.Now this. The DJIA is sellig off and Caterpillar is hanging ...
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Fun With Charts - Deere and Two Days To Go.

Here is it's five day chart Thursday morning at 10:00 a.m.. What a "see-saw". Now here is where the Calls and Puts on it that expire tomorrow are trading.
Now the Puts.
Here now is what the markets are doing.
So how do you play it? The DJI did drop over 300 points yesterday and Deere surived the day relatively unscathed. Well one comment I would like to make is that both of these series of options are cheap, thanks in part to it's the range bound chart formation. Yet the stock could explode up or down so this is one of those rare situations were buying one or more than one of each of them might be the way to go. Let's see what happens. An 11:00 a.m. update. The Calls and Puts.
Look at the spread between the bid and ask? Option makers know that when Deere starts to tank it tends to move quickly.The Puts turned out to be the real winners had you opted to play the downside.
Now look at how Deere closed out the day. First the five day chart.
Here are how the markets closed.
Deere really did nothing in a strong day. So now what? What's going to happen tommorow? It's earning report is not happening unit the 15th of this month. The Friday morning opening. Here is what happened.
Now here is how Deere closed out the day.
Now here is some information about at past Deere blog.
What do you think will happen with it's earnings report in a few weeks?

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