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Climbing The Wall of Greed.

It's a stupid market with stupid things happening. It's exhausting. Investors have to change out their investment strateties. Caterpillar and Deere had big gains this week and one week Call options on both of them went up in price 400 percent. In recent blogs I have talked about things like coming late to the party and making trades where you would make out like a bandit. Look at this mornings action in "Unusual Machines". I have talked about this stock before. Now this. A look at the Call options on "Unusual Machines" at 9:31 a.m. this morning after the stock jumped $1.57 on the opening. These Call options jumped 300% from their close on the previous day. Also look at the large open interest in these options. These Calls still have one week's life left in them. The question now is who would you be stupid enough to be throwing more money into this? Not me after all this that has happened. Now this. In forty four minutes the Calls that were already u...
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Ford Down Seven Cents On The Day Going Into The Closing

Is this an opportunity? Ford nearing the close on a Wedesday with Call options on it that expire in two days. First the five day and then the one day chart.
Now look at how the twelve series of Calls traded today towards the end of the day.
Now a different look at the same thing.
Note they closed the day before at $.23 cents and hit a high of $.39 cents. That was a trade in itself. Now what? Well the chart looks kind of ugly as it has not tested it's previous lows so jumping in to play the short term reversing upwards looks like a scary proposition. That plus buying into options that expire in two days often quickly lose half of their value if the stock ever decides to go sideways for a day. Most option traders overlook the potential of succeessfully of trading Ford options. Let's see how this situation plays itself out. I have talked about situation just like this several times before. One other note. Ford sales were up 7% last month, then to be revised to being up 11.2%. Is that a trend we can expect to see going forward? Probably. Here also are how other auto stocks traded on the day. It was a mixed day.
** What do I find unusual? The open interest number versus the number of contracts traded on the day. It tells us that not many option players are trying to daytrade it. Many option holders are stuck in them at higher prices. It's trading patterns are fickle. So many option traders pile into Tesla instead and hope for $5.00 or $10.00 price swings. That's a different game. One more topic is the topic of Ford Calls one week out. Do you need that much time? Not really. Yet think of the downward pressure that the next week out 12.5 series of Calls have indured. Here they are.
Look at the interest that they are attracting. News the next morning June 13th.
This is news which will be quickly discounted. Now a comment about this chart. It doesn't really scream at you to be considering the upside.

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