Featured

The Appetite For Caterpillar Options Going Into An Earning's Report Is Quite Small .

Let's start with this. Caterpillar has an earnings report coming out on April 30th. You should listen to it. It's not going to be difficult to find. Now look at these how these two series of options closed out the week. The Calls are just "in-the-money" and the Puts are just slightly "out-of-the-money".The cost to play the upside with one week options almost equals what it costs to play the downside. That's kind of strange as usually the Calls cost more to purchase than the Puts. Both are super expensive however Caterpillar as of late can jump $15.00 or $20.00 dollars in one day. When I say super expensive what do I mean? 2,690 means $2,690 Americian per contract. That is not chump change. You would have to have a very strong conviction it was going to move one way or another before you would want to jump in. Yet there is bigger problem. The current price of the stock is in a nose bleeding territory. Look at it's one year chart. Is it really doing ...
Post a Comment

G.M. A Four Minute Read That Will Make You Smarter. Do You Have Four Minutes?

Well actually it's a six minute read if you also want to read about an interesting dangerous Ford Call trade. Read this. I talks about the big picture. Look a how much money is being tossed around.
Now ford. First it's five day cart.
What happened? Well good news just came out that is being interpreted as being bad news.
Now a look at the Call options that expire tommorrow Dec. 6th and next Friday Dec 13th.
It will be interesting to see how this situation turns out.**Ford dropped in the last minute of the trading session with over 5 million shares getting dumped in the last minute of trading.
Here is how the 10.5 series of Calls with one trading day left in them closed.
Tomorrow will be interesting.

Comments

Post a Comment

Popular posts from this blog

Waiting For A Drop On The Opening On Bad News - Eli Lilly

Image
Here is the bad news. The company is Eli Lilly. How bad is this news? Well look at it trading in the premarkets. So what do I think? I think the news is a setback of sorts, but not really all that bad. The stock is going to open lower, that's a given. It's like trying to play Boeing after an announcement that an airplane has crashed. So the stock is going to crash and it might have a small rebound and then it's going to slide down some more. A test of sorts will happen sometime in the afternoon. It might stock falling but then where will it go from there? The best case scenario is a recognition that investors got it all wrong and the stock ends up flat on the day. Yet there might be more of a downward dumping of the stock on the close followed by a selloff on tomorrows opening. Should option players be jumping in to play the upside on next week's Calls? That is the question. Here is a look at Boeing on the days after a crash. Day two after the crash was equally as ...
Read more

A Fireside Chat - One Year Options and Thirty Day Options. Which is Better?

Image
Some say to think small, not big. Trying to play Disney options is thinking big. It is a stock slightly out of favor. If we start with it's a three year chart, we will see it is down by about 50% over that period of time. Now it's one year chart. If the stock can break 110 in early 2024 the sky is the limit. It does have a lot of moving parts so anything could happen. Look at these Calls options one year out. One year in options buys a lot of time.They look reasonable. If the stock ever inched up to the $105.00 price level in the three or four months these options would jump up in price by about 50%. Even more if they had really good news. Yet it's the "what-if" aspect of the equation that castes such a trade in doubt. "What if" stories just don't cut it. There are to many variables in play. Then again, why are we even thinking of long-term Call options after a December's rally? Let's switch gears. If consumers are out spending for X-ma...
Read more

News on Polestar , Lucid (Trading After A Reverse Stock Split) Plus Ford News And Vinfast

Image
Look at the one year chart on Polester. Now it's one month chart. What's going on? It's confusing. It was down $.36 cents on the week. If you want you can spend $.20 or $.25 on Puts and hope that the company goes under in the next five or six months. They recently raised more money by releasing more shares so it's running out of options. You can't run at a loss forever and this news will most likely scare off potential new car buyers. This actually is a low number of outstanding Put options. The consensus seems to be that it is not game over yet. Lucid started trading this week on a "one-for-ten" reverse stock split. Here is its one week chart. It was down $1.39 on the week. It's also going to struggle. Both of these stocks have challenges ahead. On a more positive note here is a chart that looks kind of perky. Ford on the week. The stock was down $.03 cents on the week and it was the 3th highest in share volume trading on the NYSE. It appears...
Read more