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Exxon And Tesla One Week Options

Exxon's five day chart is obviously going in one direction. Last Friday was a strong day for the markets and Exxon jumped up even more. Here we are now on a Monday morning and this week's Call and Put options are priced equally. Which one is going to win? As usual, there is more interest in the Calls than in the Puts. Let's also look at what might happen with Tesla this week. Oct 10th is now touted as being a "make or break day" for Tesla as it will be their "Robo-Taxi-Day". I am not a big fan of trying to play Tesla options with one week to go because their premiums are so expensive. As for Exxon, I would be more inclined to follow the direction of it's recent trend. Let's watch and see what happens. To be continued. 1) Obsevation #1 on a Monday morning. Look at this. Early into the morning trading the Puts have dropped down from the $1.80 level. Can you see how tight the "bids" and "asks" are. This helps to make them pl
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Playing a Bounce After a Five Hundred and Forty Three Point Selloff

Yesterday we looked at the drug stock Moderna as the stock dropped eighteen dollars and twelve cents in one day on no real news and we were following two Call option series, one being "near-the-money" and one being "out-of-money". Today the market dropped another big chunk.
Stay away correct? Well kind of. If a stock drops eighteen dollars on one day and if most stocks had large losses what might you consider at do at 3:59:52 p.m. on the day of this fall? You might consider buying "in-the-money" Calls waiting for an uptick on the opening. We talked about the 185 Calls and the 200 series of Calls. The stock closed if you remember at $186.40. Why Moderna and not look at Calls on stocks which dropped by a lessor stock amount? Well eighteen dollars is enough of a drop to attract bargain hunters. Here is what happened on the opening today and here is how the 185 Calls looked in the early morning trading. The stocked bounced to over 190.00 in the first few minutes of trading after closing at $186.00 and look at how high the Calls traded up too.
They closed at $10.00 opened at $11.00 and went as high as $13.10. That was a trade. If the market had of rebounded it would have popped up more. Look at how the stock went on the trade on the remainer of the day.
Will the 175 Calls get a slight bounce on the opening tomorrow opening? A dead cat bounce? The answer is probably no as there is not much to get excited about on the upside at this point in time. There would have to be some good news for the industry. Something to cause some confidence to start to buy in.

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