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Tesla - One Day Options. Not Your Typical Read

This blog is going to be a tough read because it tries to track Tesla's early morning option trading in the last day of trading in the October 18th 220 series of Tesla Calls. Critics of "one day" options are having a hayday in pointing out these "one-day-to expiring" options are a mockery to concept of sound financial investing. Here is Tesla's premarket trading price in the 220 series of Calls at 9:29 a.m. on Friday Oct. 18th. They are flat. Remember last Friday was an exceptional day for the Tesla stock with it being hit with a $21.14 drop on the day. Do today's traders remember this? Probably not. Why should they? It's a given this stock can be volatile. Option traders playing the downside last Friday on Telsa made out like bandits. Now it's 9:31 a.m.reading. Up only eleven cents. Option traders are in a period of time where they have to deal with early morning trading jitters. Is there a glimmer of hope that this stock might bounce up one
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Some Notes on Playing Apple

In my last blog I almost made it sound to easy to play Apple Calls and Puts. Let me set the stage with yesterdays and todays action. First. here is how the market was up this Thursday and here is what I did.
This chart shows Apple's Wednesday and Thursdays trading movement. I bought Puts on Apple on Wednesday at 3:13 p.m. which was June 21st only to watch Apple jump upwards in price on Thursday morning. Biden made the news saying saying "We've struck a deal" refering to infrastruture spending and everything surged upwards. Obviously I was misinformed on current events. My Puts expire on Friday (tomorrow) which means all my money in this position is at risk. Then also I was running around all day doing other things and missed a selling opportunity to get out at a slight profit. Look at how this series of Puts traded today.
What did I learn from this experience? Well I should have paid closer attention to Bidens working schedule for the day. That's something you can google that. (Caterpillar and Boeing both surged on his news of infrastructure spending). I learned that on a Thursday morning when things are going against you with any short term option position you don't throw in the towel. I learned to be patient as Apple slowly sold off in the afternoon and I was accepting of just getting back my money. Smart money can play Apple. Look at how this series of Puts sold down the the 45 cent range on the strong openinging this morning. So many option traders consider Apple options to be one of their "go to" stocks to play. Very few options priced below a dollar a contract with two or three days to go before they expire can give you such a ride for the money.

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