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One Week Options On A Monday Morning

Are you paying to much for time value? Consider these two Call option series on a Monday morning. These are 10:08 a.m and 10:13 a.m. readings. 1) Mcdonalds. ..... 2) Lowes. .... I am not a big fan of purchasing Monday morning one week options because I find they tend to be worth less closer to the end of the day. Let's follow this and see what happens. To be continued. The markets closed strong. Remember I said I am not a big fan of buying one week options on a Monday morning. I was only half right correct. The Calls on Mcdonalds closed down 23%. The Call closed on Lowes closed "bid $440.00 ask $620.00". with only 15 contrcts trading on the day.
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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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