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Caterpillar - Catching A Reversal On A Monday

Mondays are not the best of days to look for reversals however Caterpillar jumped upwards a modest amount which impacted the value of this series of Puts. The Puts are off about 50% on the day at this point in time. This is a 1:36 p.m.readout. Here is it's five day chart. Now its one day chart. It's Puts. Why consider them? It would seem like kind of a random thing to do. Why fight a strong stock? One reason is that the markets are only mildly up and could give back some of it's gains before the end of the day. Caterpillar could be gaining strenght based on all of last weeks business articles talking about how Caterpillar could potentially benefit from all this new AI movement. Caterpillar afterall builds heavy equipment which can be used in the construction of nuclear reactors. Notice that the five day chart is in an uptrend and notice the small open interest numbers in the Puts. That's understandable. No one wants to hold Puts on Caterpillar when it is in this...
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What is Triple Witching And Last Week's Action

It happens four times a year and it's going to happen on June 21st. It's a market reset. Do your your own research on what it is. Just stay away from trying to play one and two day options on the 19th or 20th later this week.
Look at how Tesla traded this week.
Tesla was up .53 cents on the week however it was up $14.00 in one day midweek! Now Boeing, it was down $12.97 on the week.
Now look at Caterpillar on the week. There was no news to explain why it was trading like this.
At the very same time Deere decided to rebound. Are wheat prices going up?
Nvidia this week topped the $3 trillion market value level for the first time. This stock keeps going up.
Eli Lilly also keeps going up.
Volatility like this should attract option traders however catching just the right situation is near impossible. If you have the energy watch the Tesla conference call that happened last week. Find it on Youtube. Elon Musk is telling the world that autonomous driving is just around the corner. That would be exciting. What ever happened to the "Summer Doldrums? The markets are not drifting sideways. It's difficult to keep up with all the action and some option traders are now opting to shy away from trading short term options. The triple witching thing and market "reset" thing. This could be a disappointing week for traders holding "near-to-the-money" options. To be continued.

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