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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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Costco Again. Options On It Are A Game Only For The Pros / And A Second Look at Roku

Last week I did a blog on Costco. It had an earnings report come out last Friday and the stock dropped $60.03 dollars on the day. Was it easy to play the downside? No,as I pointed out the Puts were crazy expensive on the day before the crash. How expensive were they? Well if you check that blog you will see the 762.50 Puts closed that Thursday at $23.09 when the stock closed at 785.59. What does that mean? It means the stock would have to drop $34.47 in just one day just to break even. Who is going to wager good money on that kind of a bet? It wouldn't be a fun game to watch. So the bottom line is I think, that options on stocks in the $700 and $800 and $900 dollar range are just to expensive for the small fish to play. Small option players are better off fighting the Ford and Nio price range options or options on stocks in the price range that Boeing, Caterpillar, Disney, McDonald's, Telsa, Roku and Moderna command. Stocks also where there is a bit of a storyline of sorts to follow. Now this brings us back to the action in Costco today which is a Tuesday. Look at how Costco rebounded!
Something different is now unfolding. The stock is rebounded. Look at the pricings on these Calls today on a Tuesday. These option now expire in three days. Yes these Calls were a touch "out-of-the-money" but we all know how explosive to the upside this stock can be.
Now look at the one day chart. Can you see how the blast-off happened in the fist fifteen minutes of trading. Anyone following the opening markets would have watched it creeping up.
Let's now change our focus and look at Roku. Here is it's thirty day chart. Look at how different it is. I blogged recently about what happened to make it fall.
Look now at these two series of Calls with a $65.00 striking price. One is for a week Friday out and one buys you an extra week beyond that. What do I want you to observe? The open interest numbers versus the daily volumes of trading. The open interest numbers are consistently higher. Yes some traders are day trading them while other are more patience in their approach and holding them overnight. Yet a patience approach over the last few week has being a recipe for disaster. What's nice about these options is that they are affordable and do make decent price swings in this relatively range bound mode. They are something to consider. Roku is not going to go away as it has 80 million subscribers. Yes 80 million.
Just something to think about. Don't buy in on my advise. Just recognize that trading options on stocks that are range bound present their own set of challenges. To be continued.**** A next day 11:27 a.m. observation.
$175.00 to $231.00. These options are playable. Now a March 14th look.

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