Comparing The Price Action Of Four Different Stocks On a Wednesday Morning at 9:35:00 a.m.

August 21, 2024

This blog is exhausting to read however it helps to point out the ambiguities of option trading. At times its a grind. A times there is no direction as to which way it might go next. In this blog the markets have just opened a little bit stronger.

Look at how the Call options are trading on these four stocks. Number one on this list is Boeing and we are looking at it's five day chart.

Look at the high volume of stock trading in it on the day. It's three month chart doesn't look very impressive.

Here now are how one series of "end-of-the-week" Calls are trading.

The open interest number is not that high. Let us now show you how it closed out the day.

It's five day chart doesn't look that exciting and the trading volume in it's options is quite light. Here now is how it finished out Thursday August 22nd. Keep in mind however that Boeing can jump three dollars quite quickly at anytime.

Next #2 Tesla. Look at the spike in the volume of trading everyday on the opening. Look at how strong it was on yesterdays opening.

This stock has jumped in the last few weeks. Here is it's three month chart.

Could this weeks Call options keep going up? Could they be a one day or two day play? The open interest in these options is suprising low compared to numbers I have seen in the past. That scares me. I think option traders are smart and made enough money on them last week when it was jumping to know that now could be a good time to move onto something different.

Here is now a look at how it closed out the day. It, like Boeing, it had a relatively flat day. Remember that Wednesday's are most usually days of reversals. So far today nothing has really happened.

. Tesla's action on Thursday. The Calls got wiped out. I will tell you why.

Now for a suprise. Number three on this list is Deere. Deere Calls can be expensive because the stock trades for a higher price than others we are watching and the volume of options on traded on it are usually quite low. Well super low actually. Look, as you can see below there have being no trades in this series of Calls so far this morning. These are however, unlike the other options we are following slightly "out-of-the-money". When this stock decides to move it can jump ten or twelve dollars in a day. Most option traders are afraid to play them.

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. How did it end up trading on the day? Well they doubled on very low volume. Here is it's new five day chart. It had just a little liftoff but then came off again on Thursday.

Number four on this list will be Caterpillar.

Options on Caterpillar are good to play when the stock is in a one or two week uptrend or downtrend. Look at it's past price actions. Notice the low open interest option numbers. Now here is it's three month chart.

Last week it surged up and this week it is plateauing. One general observation is that the open interest numbers in all of these series of options are relatively low. How did they close on the day and how was the volume of trading in it? There was actually next to no volume.