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Looking For Something To Buy On A Tuesday Afternoon?

How about one of these two situations. First Nvidia. The markets are strong and Nvidia was up smartly on the previous day. These Calls expire tomorrow and are over one dollar "out-of-the-money" so they are high risk. That plus Tuesdays going into a Wednesday in short term option trading is not as good as Friday going into Monday situations. See my recent blog about Tesla Calls going into the opening markets yesterday morning which was a Monday. Might not Exxon suprise. You can see the price of oil is down today but could it stop falling? Exxon is off in price a chunk and the Calls offered a good buying opportunity this morning.. Moves downwards this much in a one day time period are somewhat rare. Let's see what happens. That leads us to a new topic. Overtrading. I like Fridays for it's one day options and for it's late in the day look at it's "next-week-out-options" which might at this point in time be somewhat mispriced. Resets in pricings can s...
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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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