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Deere Jumped. A Once In A Year Jump. Boy Did It Jump.

If it jumped this much can you purchase a Put $8.69 "out-of-the-money" at 10:09 a.m. shown below that expires tomorrow in the hopes that some of the froth comes out of this stock? How do you jump in to play the downside with any confidence? Is a reversal imminent? It becomes a question of waiting it out to see when it tops out. There are other stocks we can look at for guidance in what to expect. The entire trading community has their eyes on this situation. When G.M. had an earnings report release back about three weeks ago the stock jumped something like four or five dollars and then hung in at that higher level for an extended period of time. Here is a chart showing that situation. Once Deere stops going up is it going to linger sideways for a while? Probably not. It's not like the company suddenly discovered gold. They make tractors. It's kind of a boring business. Let's find out. It's now noon. Suprisingly Caterpillar is not jumping up in sympathy. W...
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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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