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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 up...
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G.M. and Tesla. Both Surprised. So Did Ford.

G.M. is pumping out vehicles and people seem to be buying them! Against that backdrop is that they are losing market share in China.
Falling interest rates should help car sales. Does that mean that the Ford stock will also jump? They report October 28th. Look at it's 30 day chart and year to date chart.
They have a history of earning suprises with some being not so good. Here is how the 11 series of Calls traded on Ford on Friday Oct.26th on next weeks 11 series of Call options.
As these prices the stock would have to jump 40 cents on the week to make these Calls think about coming to life.Here is what happened.
Now there is Tesla which reported their earnings after the markets closed on Wednesday Oct 23th. Here is how it traded on that day just prior to earnings report. The open interest numbers were quite low as sometimes we see like 150,000 contracts trade in one one series in one day.
So the 212.50 series of Calls closed at $9.28. Now look at this chart and the closing price one day later.
Now look at the $212.50 Calls today. Up 418%
This kind of a spike doesn't happen very often. It was the trade of the week. Do I like paying earning report using options on automotive companies? Yes, the action is usually short and swift.

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