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Caterpillar Reports This Week

Caterpillar builds things the world needs. Rivals are few and far between. Here is how Caterpillar traded last week. It was down $4.35. The stock has had a good run in the last while. Option traders seem to stay away from playing options on Caterpillar. This stock began a major move upwards back in September. Now we are in a situation where Caterpillar's quarterly earnings report will be coming out this Thursday morning before the markets open. Typically when this happens the stock moves up or down like $10.00 to $20.00 in the first few opening minutes of trading. This time should be no different. Analyst have already weighted in their opinions of what the earning numbers will look like. Here is how two series of options (one series of Calls and one series of Puts) closed on Friday Oct 24th. These two series of options still have one week of trading life left in them. ...... Both the Calls and Puts are super expensive. Bad news could rock the stock for like $15.00-$35.00 per sha...
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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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