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Ford Call Options And A Quarterly Earnings Report

Let's start with a comment made by a Ford executive on the release of their quarterly earning report. There will be a "sunsetting of certain vehicles as we refresh our portfolio". What an elegant way saying they are surviving the changing times. Earnings for the June quarter are $.42 cents per share up from $.37 cents on the quarter a year earlier. Yesterday around 11:00 a.m. would have been a good time to catch a ride on this week's Call options. Let's watch how the markets will react to this news on the opening. Let's look at this week's Call options expiring on Friday (today is a Wednesday) and the January 15 Calls for 2027. That buys you about six months of time. First this week's Call options. They closed yesterday at $.46. Now the January 2027 Calls with a $15.00 striking price. Let's what happens on the opening. Will option traders be able to take their money and run? ... Take your money and run or wait? To be continued.
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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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