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Tesla is Down About $20.00 In Pre-Markets On A Friday Morning After Losing About $20.00 On The Previous Day

Here it is. This is a somewhat unusual situation. What are we looking at? We are looking at Tesla's one day trading action yesterday which was a day when the markets had a big decline. We are also looking at the "bid and ask" on Tesla in the premarkets this morning which is a Friday. Yesterday's big decline is causing a scare. Will the stock keep falling? One thing we do know is that the stock is going to go up or down. How do you play it? Can you play it and why would you even want to try? A bid now of $383.60 and an ask of $383.70. These numbbers are premarket pricings far below the previous closing numbers. Really far below. If you look at the above chart you can see the price range that it closed in.Yes you can buy in the premarkets with the click of a button. I should be doing blogs about how it all works but really it's as simple as it sounds. It's unusual the spread it so tight making it in theory a good time to get a good fill on an "at market...
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Disappointment on The Opening - Caterpillar Earnings Report

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Caterpillar's earnings report. What I see is 4th quarter sales up 23%. Strong 4th quarter earnings of $3.71 per share.That's a solid number. Just think, the supply chain issue isn't being used as a mistake. Now look at the the opening options market. The stock is down on the news. Management made a few remarks about near term headwinds. They do that sometimes to temper growth expectations. These two quotes are the 205 Call series which expire today. One is at 9:44 a.m. and one is at 10:03 a.m.. They would be very dangerous to consider purchasing since its very unlikely that they could ever shake off this downward spike so early in the morning. So now what? It's at this time in the morning when the decision to reacte to this bad news gets tricky. The stock is down like ten dollars and the DJI is having a good day. There is a strong tempation to jump in on the upside hoping for a quick reversal. That's one of the things that makes option trading so difficult. One...
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