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Put Options On The High Flying Stock "Sandisk" Are Difficult To Play

I have ignored this stock all year, not knowing much about it. The stock is Sandisk and it doesn't pay a dividend. Sometimes I think that the stock has gone up to much in price to quickly. Is trying to play it for the downside with one week Put options the way to go? Why try and play Puts on a stock that never seems to go down? Why not just ride the Calls up? The stock is up $52.00 on the day. At noon on a Monday here is what one series of it's "just-in-the-money" Puts look like. Do these premiums seem to be abnormally high? Yes. $59.00 dollars means $5,900.00 dollars per contract. If you are new to option trading stay away from these ones. Other stocks trading in this price range like Costco have options on them trading at much lower prices. Here is an example of what I am talking about. If we look back at a blog I did last week on Caterpillar you will see how much of the time premuim built into the pricing on these "one-week-to-expiring-options" decreas...
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A Four Minute Intro to Nio

Last week Ford was the second most active stock traded on the NYSE by share volume. It closed at $17.83, down 1.2% on the week. Nio was the fourth most active stock traded on the NYSE by share volume.That's an accomplishment in itself. It closed at $20.94 down 9.8%. Here is a picture of one of the electric cars it races. It is the fastest electric car in the world.
Here now is some company news.
Now let's look at it's trading history starting with a three year chart and followed by a one year chart and then finally a one week chart.
Might this stock, and Ford start to rebound back up in the first quarter of this year? It's chart isn't particularly attractive but the story behind the chart seems to be good. The stock's price got ahead of itself. I will be tracking the Call and Put options on it this week. *** I am not a fan of purchasing Calls or Puts with one week to go on stocks in the 20 price range. The premiums are to high with only five trading days to go. Tuesdays or Wednesdays are usually better to play the swings in conjunction with what the indexes are doing. Here now is a look at the Nio 20 series of Calls and Nio 20 series of Puts going into the opening on Monday morning. When playing these options one should be looking for short term swings and the near constant danger is that the stock might move a dollar putting you in a position which then goes offside and then never comes back again.
The liquidity in these options is excellent. A Monday update. It's up.
Now here is how the stock end the day (a Monday) and here is a look at the twenty series of Calls and Puts.
The Calls doubled in price in one day and the Puts lost 2/3ths of their value. All on a down day. This is the action that I am talking about.

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