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Can You Play One Day Options On Stocks In The Two and Three Dollar Range?

Why would you want to? Well consider this. Big Bear Ai. It's a $3.00 per share stock. Could Call options on this stock that expire tomorrow double in price on the opening? This stock was running hot earlier this year and was at that time trading massive of shares. It now seems to be out of favor. Now this. On Thursday it's Calls that expire on Friday closed at $.05 after hitting a high of $.10 on the day. $.05 is $5.00 dollars a contract. Ten contracts would cost you $50.00. So what happened on Friday's opening? Here is what happened. More than a double! After checking the proof of it more than doubling below I am going to show you how Hertz Calls closed on Tuesday. Look at this unusual chart. It's the kind of chart which can jump upwards on the opening. It's now Friday morning. Remember the closing price yesterday on Hertz's next week out Call options? They closed at $.28. Here they are now! Ths time the chart told the story this could happen! One day opt...
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Toyota

Very few option contracts trade on Toyota. I have wondered why and offer one potential explanation. It's listed on multiple exchanges around the world and "option makers" in North America are basically just following the action. If the markets open stronger in North America that means Toyota traded stronger overnight on markets overseas. Secondly, the Calls and Puts trade in incriments of five dollars.There are for example 135 Calls, 140 Calls, 145 Calls. Having a five dollar spread wipes out the incentive try to daytrade option series which are soon to expire. If the stock moves from 142 to 143 the "bids and asks" on a 140 series of Calls might hardly change. It's not like trading the stock like Boeing where you can get in and out with option series set up in increments of $2.50 . Here is it's one month charts. The company now has a new C.E.O who is getting criticized for not moving to go electric quickly enough.
What I am now about to show you might discredit some of my above points. It's a five day chart on Toyota and look how all the action seems to happen on the opening. Why? It's the effect of overnight trading on other markets. Our North American trading follows Toyota's overseas market trading.
Now back to my point of how contracts trade. A volume of three and twelve contracts in the 140 Calls and Puts series that expire soon. Look at how wide apart the "bids and asks" are and how low the outstanding number of open contracts are. It's crazy.
Toyota is a great company. It's just not one that attracts option players.

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