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Why Exxon Options Are Changing The Game Of Option Trading

At least it is now in this current market environment. Look at it's one day chart today. Remember, options trading on it are set up in one dollar intervals. Can you see how it jumped up on the opening? Now let me show you four ways traders could have made money trading this stock today. 1&2) A double happened right off the bat. Buy the 116 Calls at 9:30 a.m. and sell them at 10.00 a.m.. Or wait until 1:45 p.m. That would have also worked. 3&4) Buy the 117 Puts at 10:00 a.m. and sell them at 11:00. a.m. Or buy the 117 Puts at 1:50 p.m. and sell them at 3:55 p.m. Is it really possible to make three or four meaningful successful option trades on one stock in one day? I would say yes and in this case it helped that a double happened in the very first thirty minutes of trading. Sometimes the charts don't look like this. Let me give you this example from the opening of the trading session last Friday. From watching Exxon charts daily you will see a patte...
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Caterpillar - It's First Quarter Earnings Report And Traders Are Staying Away. A Read Which Might Be A Good Reference Point Going Forward.

Boeing rallied yesterday on the release of it's earnings report only then to tank. Caterpillar is tanking this morning in the premarkets. Let's begin with it's 5 day and 30 day chart.
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The world needs to be rebuilt and Caterpillar is there to help. It's growing, it's got a good reputation, it's not laying off employees and it's doing just fine. If it misses a beat on it's earnings report so what? Life goes on. Then there are those pesky analyst who are known to offer a convoluted spin on things. If you like Caterpillar just buy it on the dips and put it away. So the markets will be opening on the commentary by the companies C.E.O of "sales about flat". Phrasing it that way is a recipe for short term disaster.
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The two printouts above show some of the early morning action in one Put series and in One Call series. What happened the next day? A slight rebound with next to no traders trying to capitalize on a rebound. What does this tell us? It tells us option traders in general stay away from trading the "release of earning reports" on Caterpillar.
Now the one week out Call options.
Low open interest, a low volume of trading and relatively big pricings considering the these are only slightly "in-the-money" Calls which might take a few seeks to gain value. The bottom line is that this stock really got beat up and going forward it's going to be again upward journey. It helps that they are buying back their own shares. ** Now a look at how Caterpillar traded at the close on Monday April 29th.
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The volume of Calls traded is very light. That's suprising.

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