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The Auto Industry Is Under Control

Look at this printout. Almost every stock on this list was totaly flat. Tesla up fifteen cents. Do you know how seldom this happens? It never does. Yet it happened today. Now this, a chart of how Telsa traded on the day. Look at the three hour price swing between 11:00 a.m. and 2:00 p.m. Now this. The 30 day out Call options on Tesla. Now the thirty day out Put options. They mimic the same kind of price swings. Intraday price swings of $7.20 and $6.97 on these two series of options. So why is this important? Watching thirty day out options is increasingly becoming a smarter way of churning out profits. In these examples one is putting out sums of money like $2,000.00 U.S. with the expections of daily returns, well in this case about $700.00. I know what you might be thinking. You might be thinking that the risk/reward aspect of the equation doesn't make sense. In response to those concerns I would say employing this strategy works best for traders already engaged in trading ot...
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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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