Featured

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
Post a Comment

First Solar

Remember in previous blogs I made mention of the EV industry experiencing a bit of a stumble over range anxiety issues. Then Tesla launched their new truck last week and reported they had a million orders for it. Suddenly the range anxiety issue seemed to disappear. Well the same thing was happening to the solar power industry. It was being reported for a few weeks or so that rising interest rates was keeping new customers from buying solar panels and companies from building out solar powered projects. First Solar sold off yesterday. Here is it's one month chart and a 2:32 p.m. look at the 155.00 and 152.50 Puts. The volume of trading on them was next to nothing.
Now the 155 and 152.50 Puts in the afternoon.

 Now here is the thing. When a stock starts to fall who knows when it will stop falling.  Other stocks like Netflix, Deere and Snowflake also trade like this. Big moves in short periods of time. Now look this chart. It's two days later.
Look where the stock is at now. It's below $145.00.  The 155 Puts are up 400%. Now for a one day chart to see where it closed today, December 7th
Would now be a good time to look for a reversal? Here is it's year-to-date chart.
This is a chart which could go both ways. It's 82 percent owned by institutions and can move on no apparent news, or news that retail players can't sniff out. Back in April it had a nice move.. All I am really trying to say is that option traders look for the breakouts on stocks like this. The light volume of option trading part of this story doesn't bother me. It's actually something I  appreciate. I don't like trading options on stocks like Apple where everyone and his brother is following the same action with a sense of confidence.. First Solar is known to surprise in both directions. * A Friday morning report.
A pop. Now here is the proof in the pudding. Look at the number of contracts traded in this series of Call options.  To be blunt, the someone wants to be in on this action. Who else trades options in blocks of 100?

Now look at it's chart a few weeks later.
* Let's now jump ahead to July 27th, 2024.
The one year out Calls is where the action turned out to be.

Comments

Post a Comment

Popular posts from this blog

A Fireside Chat - One Year Options and Thirty Day Options. Which is Better?

Image
Some say to think small, not big. Trying to play Disney options is thinking big. It is a stock slighty out of favor. If we start with it's a three year chart, we will see it is down by about 50% over that period of time. Now it's one year chart. If the stock can break 110 in early 2024 the sky is the limit. It does have a lot of moving parts so anything could happen. Look at these Calls options one year out. One year in options buys a lot of time.They look reasonable. If the stock ever inched up to the $105.00 price level in the three or four months these options would jump up in price by about 50%. Even more if they had really good news. Yet it's the "what-if" aspect of the equation that castes such a trade in doubt. "What if" stories just don't cut it. There are to many variables in play. Then again, why are we even thinking of long-term Call options after a December's rally? Let's switch gears. If consumers are out spending for X-mas
Read more

Deere Lays Off /Tesla / Eli Lilly/ Home Depot/ Nio

Image
It was announced today, a Tuesday that Deere is going to lay off some of it's workers. Perhaps that news was leaked out last Friday and that's why it could have sold off last Friday afternoon. The stock basically has done nothing over the last three years but some traders love it for it's thirty day swings. I have talked about Deere before. The markets were accepting of this news. In other news Tesla Call option traders are rejoicing. Image getting in two trading sessions ago at $196.00 to watching it shot up to over $230.00? This was (it's up in the premarkets again) the Telsa trading opportunity of the year! Then there is upside movement in Eli Lilly. But then there is this background news. Now this. Talk of a hurricane. Will Home Depot go up? Then there is Nio. It's shares trade huge volumes and the stock has a wide following. Might it trade back up to $6.00? It's down almost half price on the year. One of the problems in trying to anticipate what m
Read more

I Wonder How The Back Office Is Going To Handle My Complaint

Image
The blog is about dealing with the back office of the brokerage company I trade with. This story happened today. Todays trading session has closed and I just made a telephone call to them just after the market closed to voice a complaint over how I feel I got short changed. Here are my background notes. 1) It involves trading the 370 Boeing Puts that expire at the end of this week. I bought in at 10:08:34 a.m. and sold out at 2:59:38 p.m. I was stuck in this position longer than I had hoped. I got lucky and did O.K., however that is not the point. 2) Here are my two "in-and-out" tickets. Two contracts in at 10:08 a.m. at $163.00 each and two contracts out then "at-market" for $365.00 each at 2:59.38 p.m. Now here is Boeing's one day chart. It dropped precipitously from 2:59:00 p.m.to 3:00:p.m. I just happened to be watching it at the exact time of the crash. That's when news came out that the "FAA opens Now a Boeing Inquiry over 787 inspections"
Read more