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Tesla - One Day Options. Not Your Typical Read

This blog is going to be a tough read because it tries to track Tesla's early morning option trading in the last day of trading in the October 18th 220 series of Tesla Calls. Critics of "one day" options are having a hayday in pointing out these "one-day-to expiring" options are a mockery to concept of sound financial investing. Here is Tesla's premarket trading price in the 220 series of Calls at 9:29 a.m. on Friday Oct. 18th. They are flat. Remember last Friday was an exceptional day for the Tesla stock with it being hit with a $21.14 drop on the day. Do today's traders remember this? Probably not. Why should they? It's a given this stock can be volatile. Option traders playing the downside last Friday on Telsa made out like bandits. Now it's 9:31 a.m.reading. Up only eleven cents. Option traders are in a period of time where they have to deal with early morning trading jitters. Is there a glimmer of hope that this stock might bounce up one
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Rivian

What does it mean when someone dumps 875,000 shares of Rivian at 3:59:59 p.m. at $13:45? That's a twelve million dollar ticket.That happened yesterday after the stock sputtered around all day on low volumes of trading. (It usually trades about 26 million shares a day so the 875,000 share ticket may not be all that unusual).
That was calculated timing, perhaps computer programmed selling. Would that send off shock waves on it's following mornings trading. Not really.
Look at what happened in the first minute of the opening trading the next day. A block of 275,017 shares traded at 9:30:59 a.m. at $13:71. What does this point out? First, it might point out how computerized trading triggers trades to happen in the last second of the first minute of trading in any new session. How you can profit from that observation is something you will have to figure out on your own. It also points out how infinitesimally inconsequential all of the retail option trading is. Your purchase of five Calls on Boeing that expire this Friday is as significant as a fly landing on the back of a horse. It also points out the efficiencies of the markets. So the next question is how can the little guys make money playing options when the system with it's computerized buy and sell programs is as tight as it is? In some ways retail option traders should find some assurances in the markets having this much depth. For example, from my experience the market makers can not mess around with buy and sell orders going in "at market" at 3:59:57 or 3:59:58 p.m. That's a good thing. Happy trading.

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