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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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Lowes / Apple

The first trading morning of the week are always difficult to play because the premiums on Call and Put options which expire on Friday are always excessive. In this instance Monday was a holiday so today, Tuesday was the first day of the week. I found myself focused on 'Lowes' because it was dropping in price when everything else I usually follow seemed to be going up. I had played it last week. Here is what I did.
In at 10:53 a.m. at $4.06 and out at 11:53 at $4.63. A one hour trade. Here is it's chart, I caught the rebound.
What was odd about this trade? Well look at how few contracts traded early in the morning.
Only one contract traded in the first ten minutes of trading and at 10:53 a.m. only two contracts had traded. In total there was only thirty five outstanding contracts. What a crazy low number.
Contrast these open interest numbers and daily number of contracts traded to the action on the day in "Apple". The numbers you are about to see are shocking.
63,361 contracts ended up trading on this series of Call options in one day with an open interest at the end of the day of only 4,565 contracts. So many traders are making this series of options as "go to" options looking to capitalize on daily market swings. They are inexpensive, move up and down quickly and offer instant liquidity. Playes sometime purchase them in quantities of one hundred or more at a time. Here is "Apples" one day chart.
I did a feable trade in it and got out and broke even. it's all about catching an interday swing and getting out. Here is how they traded on the day and here is what did. I was lucky to get out and call the trade a wash. It ended up closing lower.
The takeaway on all of this is that traders are now using "Apple" Calls as a trading vehicle in a big way.

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