Featured

Caterpillar Calls Again.

Last Friday we showed how one series of options traded on that day. Caterpillar was up $21.96 on that day. The Call options jumped $6.91 or 46.96 %. Only 13 contracts traded. Today Monday was not much different. Caterpillar jumped upwards on the day. The same series of Call options, the 665 Calls with the same striking price jumped again ( only on one contract ) and closed the day bid $37.95 - ask- $40.40. It helped that the DJIA also jumped up. Now here is it's five day chart. All this on no real news except the angle that it makes power generators. So Caterpillar is up over $50.00 in only two days. What to do? Buy these short term Puts that expire this Friday? Fighting strong stocks at the start of the week using near to expiring options is to big a risk to take with so many stocks now in nose bleeding territories. Now this. It's one month chart. Trading volumes are up. When stocks get hot like this something has to give. The question is when. I don't like fighti...

Will Fisker Survive?

Maybe. They have whimical t.v. commercials. I want one, but why they make claims to using recylicable materials in their vehicles is something I don't totally understand. Here is it's 5 year, 30 day and 5 day chart.
Image buying near the top and then averaging down? What a mess for existing shareholders. So what is happening now? Auto Trader in Canada has two used one's for sale. If the company goes under will replacement parts be available?
Fisker now needs more $$$$ to survive. Is the next step finding a partner and / or issuing more shares? Their product lines are strikingly beautiful and their name does have some brand recognition.Yet there is a big probem.
A loss last year of $762 million. That's a crazy big chunk of money. How did they get themselves in such a big mess? Now with the added bad publicity of potentially going bankrupt the path forward is even that much more difficult. .
Miracles have happened. Look at how Canoo, another struggling E.V. maker regained some ground this week.
Now this. Fisker Call options. They are pretty stupid to be looking at given that a drastic reverse stock split is probably imminent. Look at what happened to Faraday Future Intelligent Electric Inc.
A one week pop the $.30 cent level would make these options double. (You can't go any further out that September Calls). Might Fisker rebound to $.30 cents per share? It was there only a few days ago. Guess what? It's not worth the risk. So what even if it does. The real money was made in shorting it months ago. Stick to Caterpillar Calls and Puts. Caterpillar is not going to go away anytime soon. ** A March 18th 9:28 a.m. update.
Now this.
A March 26th update.
An April 12th update.
The short sellers win.

Comments

Popular posts from this blog

Waiting For A Drop On The Opening On Bad News - Eli Lilly

A Fireside Chat - One Year Options and Thirty Day Options. Which is Better?

Another Blog On "Vinfast"