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Apple Charges Downwards Towards The Close.

What does a downward spike on the closing mean? Does it mean something different than a upward spike on the opening? Spikes upwards on the opening happen on good news. Spikes downwards on the close are not necessarily for company related issues. More often than not it has more to to do with just getting out of the market. A case in point Apple dropped in price rapidly towards the close to then only being off only marginally after the close. A sense of stability was created with that reading . So are Calls on the upside the way to go? Let me show you two different series of Call options with the intentions of pointing out how "in-the-money-Calls" trade differently than only slightly "out-of-the-money" Calls. First the "in-the-money" Calls. Now the only slightly "out-of-the-money" Calls. Let's watch to see the difference in how they trade.
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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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