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Day Trading One Month Out Options. Learning To Skim The Tiniest Of Moves

This blog is different. It's about skimming small profits on one type of option in particular. It's also my story about how to make the time value of "one-month-out" options your very best friend. What I am about to try to describe to you is a phenomenon of wrongly calculated time values built into option pricings. Wrongly calculated from the perspective that some option prices (their "bids and asks") are over-sensitive to the tiniest of pricing swings. Who am I to make claims like this? What credentials do I bring to the table? I don't want to tell you as I want to keep my identity a secret. Let's just say that I have being trading options for a long time. Over the years I have learned that "nine month" or "one year out" Call options or Put options on stock's in the ten dollar price range are often mispriced. As example, I have followed the stock "Ford" for like forty years and to me it's January Call options a...
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Nio Again- Day Trading Options on This Electric Car Company And Part Two Of Trading In the Premarkets.

Yesterday's blog was about using the premarkets to sell out at a profit two Nio Puts I was holding. "Nio" rallied on Wednesday and tanked on Thursday. I got out of my position with a premarket selling ticket which all options traders can do. The trick in making these types of trades is that there are no bids and ask on your screen so you have to pick a price you're happy with and then live with the consequences. At the end of this blog I will show you how I am trying to do this again before the market opens this morning on a different stock. It's Friday March 11th and the markets open in a few hours. This time it will be a Call option on Boeing I am trying to sell again into the premarkets. I would like to now explain a failed attempt to again trade Nio Calls in yesterdays afternoon markets. I will show you Nios one day chart and the trade I did. It is my experience that it is not wise to "go back to the same well", meaning trading the same stock over again when your playing options. It's always best to look with fresh eyes at new situations. Here is yesterday's chart on Nio and here is what I did.
Are you able to see how it crashed on the opening and looked like it wanted to turn around in the afternoon? Here is my buy ticket when I decided to play the potential rebound at 1:04 p.m.
What next? I got spooked. With about $500.00 on the line I didn't want to be in an overnight position going into a Friday, the last day when this option series was to expire. If it were to languish sideways I would be be out of luck. ( I liked the odds of Boeing bouncing on the opening, the DJI was recovering towards the end of the day). So what did I do. Well twenty minutes before the closing bell I got out and got my money back. If I had waited another ten minutes I would have gotten one hundred dollars more. I just wanted out.
As it turned out Nio looked like it wanted to open up higher in the premarkets this morning but then turned south and was down all day. Part two of this blog is about the pemarket ticket I now have in on Boeing. I purchased one Boeing Call, the 210 series at 3:52:27 p.m. yesterday which expires today. Here is it's one day chart, the option contract I purchased and my premarket sell ticket. Let's see what happens next.
Now here is the fill that I got which also shows the time I placed the order. I placed the order at 7:07 a.m... I did o.k. and Nio continued to go down on the opening and all day.
To make money like that on Boeing is never a sure thing. Look at this five day chart on it and you will see how lucky I was.

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