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Why The First Two Or Three Minutes Of Trading After The Markets Drop Over 800 Points Can Be So Important To Option Traders.

Option traders already know this. The market sometimes pops on the opening after a large one day drop. Yesterday, a Monday it closed down over 800 points. The problem sometimes is that if you put in a ticket in the premarkets to get in on the opening, a "buy at market" ticket you risk getting filled at a ridiculously high price if the price of the stock opens with a gap to the upside. Let's look at how one series of Home Depot Call options traded on the opening. Today is a Tuesday. The low of the day on these Call options happened on the opening with a price of $6.46. The chart doesn't show this low priced sale happening. Let me try and explain how this happened. Look at this. Here is where it can get complicated. The chart above shows a spike at 9:00 a.m. Yet the markets don't open until 9:30 a.m. You can't trade options in the premarkets. If you submit a "buy-at-market" or "sell-at-market" ticket it sits on the books and gets an opening...
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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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