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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 u...
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Staying With the 175 Calls on Boeing Of The Last Blog

One of the things I elluded to in my last blog is that weekends often act a reset buttons for the market. Sentiment can change. So Boeing jumped on Monday morning and the 175 Calls that expire this Friday went up. Here they are. They hit a high of $5.00. Sometimes it takes thirty or sixty minutes on Monday morning before this sentiment changes. That was the case this morning.
Then the market turned south and the DJIA closed dowm 649 points.
Let's now watch what this same series of the Puts did.
Can you see how options can be valuable trading vehicles in volatile markets? Caterpillar had the same story, a bounce on a Monday morning and an afternoon sell off. The Calls on Caterpillar that closed on Friday at $1.97 bounced as high as $8.40 on Monday morning.
Now look at what this same series of the Caterpillar Puts did on the afternoon.
What is there to learn from this? Well first don't be angry at yourself for not catching this action. Look at the low volume of Put options traded. Drops like this on a Monday muddy the waters for the rest of the week. The world needs to rethink the importance of option trading. Sometimes I feel that I am banging a drum that no one is listening to. All I really know is that Boeing and Caterpillar popped on the opening and then got slammed. A look at the same situation at 10:21 a.m. on the next day. First Boeing.
Now Caterpillar.
Can you see the power of options? Can you see the damage Trumph is causing messing with Tariffs? At some point in time traders will step in an attempt to stabilize the markets. Yet why not just stay away and look for happier days. Trying to outguess the markets is now at this time, a fools game.

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