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Suspicions About Market Manipulations - Caterpillar Options On The Opening With Their Last Day To Expiring Options

Caterpillar executives take note. You have leeches using your companies stock to suck out money in a systematic way. Let me explain. It's ingenious what they are doing and at the same time somewhat laughable. In the next couple of paragraphs I am going to show you something that is going to change your thinkings of how you should be looking at the markets. Let's start with Caterpillar chart of last Thursday with Friday being Good Friday and a day the markets are closed. This makes them one day or last day to expiring options. What do you see? I see a stock that sold of on the morning and then rallied and then petered out the rest of the day. Nothing to out of the ordinary one might say. Now this. The low of the day was at exactly 9:45 a.m.. In a blog I did two days ago entitled "Caterpillar Puts On A Thursday Morning With Friday Being A Holiday" I was tracting the 720 series of Puts. Here is a printout I showed watching how they traded on the opening. The high for ...
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HESAI - A New Company To Learn About ( With a July 2025 Update)

Let's look at this stock as a trading vehicle. Hesai is a company that helps to make driving safer.
I am not saying that I endorse this company or know a heck of a lot about it. All I am saying is that I am intrigued that it has options trading on it. Option traders are just discovering it. Just look at the light volumes of trading on it. What does that mean? Well found below are four readouts of how it's "five dollar series" of Calls are trading which will catch you by suprise. What I want to show you is how light the trading volumes are. It's a small company. Small but big enough to get itself listed on a reputable exchange and big enough to introduce the concept of having Calls and Put Options trade on it. All that takes planning. Here are some of it's current realities. It's Chief officer is stepping down and the board is changing. That sets off warning flags. So does this news .
Here is it's year to date chart.
Eight dollars to four dollars and back up the five dollar range. Who wants to jump on the roller coaster and go for a ride? Here are a look at the five series of Call options now available on it. Now, this might shock you. HSAI has these five series of Call options on it that expire tommorow and only one call option on this series traded on it today. That means that these short term options are somewhat illiquid. If however you look at the option series trading one month out (June 21ST) you will see that's where the trading action is.
Lets now look at the "five series" of Call options. Once again, it's the one month out Calls which are interesting. Day traders have discovered these ones. Given they are more actively traded their "bid-and-asks" are tighter together. That's one of the problems of trading in these and other companies offbeat options. Little volume means the market makers keep the "bid and ask" far apart. Contrast this to a Tesla trade I made yesterday. In and out relatively quickly with no real issues and tight no nonsence fills.
As for the "longer term", "further out" Call options there is no interest in them at this point in time. What about the Puts? Are insiders shorting them using options? Not really. One concern I have is that there are so many variables in play. For example, what percent of the float are insiders holding and do they have lock up provisions restricting when these individual could offload their holdings?. It's the unknown factors like this that make it all so much of a gamble. One final thought. Forget the stock for a moment and switch your thinkings to the concept of playing options on five dollar stocks. Look at it's five day chart. It's swings. That's what help to make five dollar options playable.
Part Two. Now a look at the June 21st five series of Calls again on Monday May 20th.
It only takes a small move to move the needle on these ones. The sloppy "bid" and "asking" prices are one of issues of trying to play these options. Now an earnings report release.
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Now that you know about this company you can see it's best to stay away just before earning reports come out. Options on five dollar stocks can suprise, both ways. ** a Dec.27th update.
Now a look at it on July 16th, over one year later.

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