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Ford Calls and a Big Surprise.

Look at this Ford chart on July 1st. Now todays Call options. Every quarter these types of reports come out. This one was good. Watch for it Next July 1st. A $2.00 option went up to close at $37.00. In my introductory remarks to this blogging channel a few years ago I said many old farts driving Mustang convertables paid for them from money made on playing Ford options. This bounce today in the Call prices based on this good news report of rising sales was one of those events. Now this, the strenght continued into the following day which is Wednesday July 2nd. This is a short week for option trading with tomorrow being the last day. Action like this is extremely rare.
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Caterpillar Gets Smashed on a Monday Morning

It happened. Down $12.00 on the morning.
Can you see how at around the 11:30 a.m. time period it seemed to find support to only then slide down some more. Wouldn't you think option traders would be jumping back in to catch a rebound? Apparently not. Look at this.
An open interest number of seven contracts from the previous trading session when it was "in-thr-money" and 87 contracts traded on the dy.. Perhaps if we look at a five day chart and a thirty day chart we will be able to detect why there is so much hesitancy to get back in to catch the upside.
But wait. Read all this stuff.
So Deere is also mentioned as a company which might benefit from this current economic environment. Looka at it's one day and 5 and 30 day chart.
Until the bulls start to run nobody wants to be in the game. Now a 2:56 p.m. update.
Now a readout ten minutes later.
Now the closing.
It will be interesting to look at the open interest numbers tomorrow to see how many traders stuck with the paper gains that were made today. It's not very often you see Caterpillar drop that much in one day. ** The open interest number the next day.
It's 75 compared to 7. What does that tell us? More than than half of the contracts sold bought yesterday were sold out before the end of the day. Traders where playing the afternoon rebound in the stock as opposed what might happen in the following four days.

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