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Tesla and Deere Going into a Thursday Morning.

Are you able to remember my blog last Friday talking about Tesla dropping $19.00 in one day and it's Puts jumping up a zillion dolllars? Here are the closing numbers on Tesla and Deere today, Wednesday September 11th. They are difficult to read but Tesla closed at $228.13 and Deere at $388.59 Now look at the sightly "out-of-the-money" Calls on both of these two stocks which expire at the end of the week. Now the Deere Calls. .................. Now look at their one day charts. Remember I have repeatedly said that Wednesdays ( in the context of trading one week options) are the best days of the week for turnarounds situations. Look at the one day charts and look at the gains on the day that both of these option series had. They both took off on the upside after a morning dip. I will continue to track the movement of these two series of Calls over the next two days but the context of this blog is a blog in itself. Wednesday once again can be turn around days. Happy tr
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Could You Play Disney Calls Last Friday After The Stock Jumped, Hoping For Another Bounce On Friday Morning ?

Here is how Disney traded on Thursday. It has been a dog of a stock for years for a hundred different reasons. It also has a hundred different moving parts which when dissected could unleach value. It could be a $200.00 stock by this time next year. So after looking at this chart do you think and second wave of buying might be in the cards on it's Friday morning opening? Would buying Calls be wise, Calls that expire the very next day?
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Can you see how the $110 Calls closed at $1.21 on Thursday after a wild ride all that day. Notice the closing "open interest". It's less than ten percent of the volume of the daily trading volume. That tells us that most of the traders don't want to take the risk to be in the game. Would you expect a Friday morning pop and would the $110.00 series be the one's to play? Here is the answer. First the chart of Friday's trading.
Now here is what the $110.00 Calls did on the day.
If you think next weeks Calls are more promising here is how they closed out the day on Friday. It's something to think about. The 30 day out Calls or longer might be better.
Disney was up smartly on the week. Do your research as to why.** A late Monday morning update, Feb 12th. Would you have the guts to hold onto your Call option over the weekend hoping for a second way of buying power to come in?
The options more than doubled.

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