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Caterpillar Calls. Trying To Make It Simple

So if you like the stock Caterpillar and want to play the upside on it using options you could buy these ones. But why would you? They are up 46% on the day so the real money was made in buying them yesterday and selling them today. The stock would now have to go up about $25.00 in one month just to break even and everything above that price would be profits. If you now look at a thirty day chart you will see that's what it did last month. These are "one month-out" options which are ten dollars "in-the-money" and they trade in a different fashion than short term options. Yet that not what I want to talk about. I note that only 13 contracts traded on this series on the day and the open interest in them stands at only 11. What does this tell us? 1) It tells us that professional money managers are totally lacking in their understandings of the dynamics of option trading. 2) It tells us that retails traders are to some degree misguided by the learning materials ma...

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I see this companies electric vehicles on the road and I have to admit they offer a fantastic ten year warranty. Are they reckless in making such a offer when they have no track history? Might not high servicing costs come back to bite them further down the road?
Look at how the stock jumped this week on this good news. While high production increases are only one part of a companies story they are encouraging to their shareholders.
Visit there website and learn about their dealership network. The waiting game begins to hear about their next earning's report. Now look at these three charts.
Back on Sept. 6th I wrote a blog on "Nio", a chinese electric car company. Here is it's chart that I showed in that blog.
It shows Nio jumping 25% in one week. Now let's look at it's three month chart.
Recently I did some blogs on trading options in the five dollar range. The scary part is we have seen how other stocks in this space are down. Look at these four. None are up. All have a story but none of them are rewarding shareholders.
Lucid just made the announcement they are issuing new shares to help raise money. Other news.
Do your own homework on this one.

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